Essex Minerals Inc. (TSX-V:ESX) announced that it has completed the acquisition of its Australian joint venture (JV) partner KNX Resources Ltd.
The mineral exploration company said the acquisition gives it an 88% interest in the Cumberland and Compass Creek projects as well as 100% of the Mt Turner project.
Essex noted the purchase price consists of 5 million of its shares plus 5 million two-year share purchase warrants with an exercise price of $0.20 per warrant.
READ: Essex Minerals enters into binding terms with First Au for arm's length option, earn-in, and acquisition of Mt Turner project in Australia
The company added that it shall retain the right to force conversion of the purchase warrants if the Essex stock price closes above $0.45 per share for more than five consecutive trading days before their expiry date.
Each KNX shareholder received one Essex share plus one Essex purchase warrant for approximately every 4.052 KNX shares held.
All purchase shares and warrants will be subject to a statutory four-month hold period from the date of issuance.
Essex Minerals is focused on mineral exploration and mine development and finance opportunities where it can adopt an option earn-in and joint venture model without the issuance of vendor shares.
Contact Sean at sean@proactiveinvestors.com