Australian Mines (ASX: AUZ) has now finalised the acquisition of Nigeria Gold Pty Ltd, after entering into deeds of settlement with the vendors.
The agreement is for the number of shares to be issued as full and final settlement of the Tranche 2 shares, which were to be issued under the terms of the transaction as approved by company shareholders last month.
Benjamin Bell, managing director of Australian Mines, commented on the positive outcome:
“This settlement marks a highly successful quarter for the company; with the completion of the high-resolution aeromagnetic surveys at Yargarma and Kasele projects and on-going work at Kagara, the company is looking forward to updating the market with developments in the coming weeks.”
The details of the agreement
Following legal counsel on the matter, Australian Mines offered 29,999,998 shares to Nigeria Gold shareholders as final settlement for Tranche 2, in place of the 60 million being claimed. This was accepted by the Nigeria Gold shareholders.
The company will now proceed to issue the shares, subject to any related party shareholder approvals that may be required.
A further 36 million Australian Mines shares may be issued to the Nigeria Gold vendors if the company’s Nigerian exploration results identify a JORC Indicated Resource of 500,000 ounces of gold before 9 March 2013.
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