The parties have agreed to the following variations:
• Reduce the number of consideration shares from 15 million to 12.5 million fully paid ordinary shares;
• Waiver of the vendor placement condition; and
• Amend the terms of the total $200,000 cash consideration payments as follows:
- non-refundable $50,000 is payable immediately (paid);
- $50,000 is payable on Completion; and
- $100,000 is payable following Completion, in the event FEL raises no less than $400,000 through the issue of fully paid ordinary shares from persons introduced by Mercury.
FEL had issued 12.5 million consideration shares on May 23, 2019 using its existing 15% capacity under ASX Listing Rule 7.1. The consideration shares are subject to six months voluntary escrow.
The company and Mercury continue to work towards completion of the transaction which remains subject to certain conditions precedent before June 30, 2019.
READ: Fe Limited secures option over large footprint in world-class Pilbara region, shares surge 50%
Earlier this month, FEL entered an exclusive option agreement to acquire up to a 75% interest in 19 gold, copper and lithium tenements located in the Pilbara region of Western Australia.
The Macarthur tenement package provides FEL with access to highly prospective ground in a world-class lithium, gold and base metals province near to tier one infrastructure.
Site visits and sampling conducted by Macarthur identified several targets for further exploration with several occurrences of observed pegmatite in outcrop.
$2 million placement
FEL is undertaking a placement to raise up to $2 million and has already received an initial $338,500 in applications.