Perpetual Resources (ASX:PEC) has signed an agreement to loan $350,000 to Neo Resources (ASX:NER) as part of a merger agreement under which Perpetual will buy all of Neo's issued capital.
The merger, announced in april, is to be done via an all scrip scheme of arrangement with the scheme booklet likely to be despatched by early July.
The merger requires the approval of Neo's shareholders at a meeting likely to be held in August.
The scheme is also subject to a number of conditions and approvals including regulatory, Australian Court and shareholders of both the companies.
The loan being forwarded by Perpetual is secured against Neo's assets with Neo required to repay the amount, should the merger not go forward.
Perpetual is focused on accelerating exploration and development of its Atoz coal project in West Sumatra, in Indonesia.
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