Motopia (ASX: MOT), soon to be renamed “Ausbase Minerals”, is continuing to move forward with the Treasure Developments Ltd (TDL) acquisition (a Cyprus based company), which would transition Motopia into the resources sector - with a focus on copper nickel gold in Cyprus.
Highlighting the prospectivity of the project, historic assays have returned up to 19.06% copper.
A Share Sale Agreement relating to 100% of the issued share capital in TDL has been executed between Motpoia and the TDL shareholders
Under the agreement, Motopia will pay A$1.6 million as consideration for the deal, with $850,000 split between cash and shares and a deferred consideration of $750,000 which is only payable on receipt of a Bankable Feasibility Study.
The agreement is subject to shareholder approval, the issue of shares under a prospectus, the issue of shares to Treasure shareholders, approval to the change in nature and scale of the company’s activities as well as raising at least A$2.5 million under a prospectus.
Highly prospective
TDL’s mining interests cover an area of more than 60 square kilometres that host a number of exploration targets where there is exposed copper, gold, silver, nickel and zinc mineralisation.
Historic assays have delivered high grade copper of up to 19.06% and recent surface sampling suggests the gold is widespread with high grades of up to 17 grams per tonne (g/t) gold.
As part of this move, Motopia in August appointed independent geological consultant Dr Michael Green as a director. Green had worked for Tanami Gold (ASX: TAM) as its senior geologist prior to going independent in August 2006. His clients include Kentor Gold (ASX: KGL) and Northern Mining (ASX: NMI).
Cyprus: largest known deposit
Cyprus has a long history of mining and contains existing infrastructure with a favourable jurisdiction – including a 10% Corporate Tax rate, the lowest in the EU.
Mining has focused on the many exposed massive pyrite deposits, which have been exploited for copper, gold, silver, zinc and sulphur.
The largest known of these deposits was Mavravouni with 17 million tonnes at 4.5% copper, for 765,000 tonnes of contained copper.
Mineral exploration is active in Cyprus with Northern Lion Gold Corp (CVE: NL) exploring numerous concessions covering massive pyrite deposits.
Notice of Meeting
Motopia has release a copy of the Notice of Meeting for the General Meeting to be held on the 18th October, with shareholders to consider:
- Approval to the change in nature and scale of the company’s activities;
- Issue of up to 25,000,000 shares under a Prospectus
- Issue of 2,500,000 shares to the TDL Shareholders
- Approval for the issue of 141,427,140 Options (on a pre-consolidation basis)
- Consolidation of the company’s securities on a 50:1 basis
- Change of the company’s name to “Ausbase Minerals Limited”
Prospectus
Motopia is also in the last stages of finalising its prospectus for the purposes of re-complying with Chapters 1 and 2 of the ASX Listing Rules.
It will invite existing shareholders and investors to apply for up to 25 million new shares at an issue price of A$0.20 to raise a total of A$5 million with a minimum subscription of A$2.5 million.
This includes a priority offer of 5 million new shares to raise A$1 million that is being offered to existing shareholders.
Both offers will open on 8 October with the priority offer closing on 19 October while the public offers ends on 2 November.
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