Boadicea Resources Ltd (ASX:BOA) is in a trading halt ahead of a general meeting tomorrow at which the resolution for the sale of a number of Fraser Range assets to IGO Ltd’s (ASX:IGO) IGO Newsearch Pty Ltd will be put to shareholders.
The vote, which represents a ‘transformational’ decision for the company, will take place at the online general meeting which starts at 11am AEDT.
If approved, an Asset Sale Agreement with IGO Newsearch will see the premier Fraser Range nickel producer explore nine of the company’s tenements on the range at no cost to Boadicea for up to five years.
Unfranked dividend
Also subject to approval by security holders is an unfranked special dividend of 8 cents per share, with dividend ex-date of October 13, 2020, record date of October 14 and payment date of November 9, 2020.
The dividend will be allocated from a portion of the initial sale proceeds and is intended to reward shareholders who “have been exceptionally loyal to the company for a number of years”, said managing director Jon Reynolds.
IGO initial payment
Approval by shareholders will result in payment of IGO’s non-refundable upfront consideration of $5.5 million in cash and $1.5 million to subscribe for 6.25 million BOA shares at 24 cents per share.
IGO will not participate in the special dividend.
The trading halt that had been granted by the ASX will remain in place until the start of regular trade on Thursday, October 15, or when an announcement is released to the market.
Shares hit 39 cents on Monday before the halt this morning, a new high of more than seven years.