Boadicea Resources Ltd (ASX:BOA) shareholders approved the asset sale of nine tenements in the Fraser Range to IGO Ltd (ASX:IGO) at today’s general meeting.
The asset sale will see IGO Newsearch Pty Ltd explore nine of company’s tenements on the Fraser Range at no cost to Boadicea for up to five years.
Approval paves the way for a cash injection from IGO, an investment in the company by IUGO and the payment of a special 8-cent dividend to shareholders.
Managing director Jon Reynolds said “The board thanks our shareholders for the overwhelming support of the asset sale.
“This marks a new chapter in the company, providing a substantial cash injection to accelerate exploration activities in the exciting Paterson Province (Koongulla) and other tenements, whilst retaining upside participation from any discovery IGO makes in the Fraser Range tenements that are included in the asset sale.”
Unfranked dividend
Also approved by security holders was 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.
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.
Indicative timeline
Along with the dividend dates, the general meeting vote provides a commencement date of on or before October 21, 2020, and includes:
- Payment of upfront consideration and repayment of IGO loan;
- Payment of subscription price and allotment of shares to IGO Limited;
- Granting of exclusive exploration rights to IGO for the nine defined tenements in the Fraser Range; and
- IGO Limited right to nominate a non-executive director for appointment to the board.