GTI Energy Ltd (ASX:GTR) welcomes the news that spin-off Regener8 Resources NL has closed its IPO, having raised $4.5 million.
This signals the conclusion of a deal with the new ASX-lister to acquire GTI’s gold holding, the Niagara Gold Project in WA, upon its debut, with shares in Regener8 forming part of the sale terms.
Shares in Regener8 part of deal
On May 3, Regener8 lodged a prospectus with ASIC to raise not less than $4.5 million via the offer of at least 22.5 million new shares at an issue price of $0.20 per share to seek an ASX listing.
As part of the offer, Regener8 made available 12.5 million shares to current shareholders of GTI.
Under the acquisition agreement between GTI and Regener8, GTI is to receive 5 million Regener8 shares, 1.5 million performance rights and $150,000 cash at completion of the IPO and acquisition.
These listing conditions, including settlement of the acquisition, are expected to be satisfied in the coming weeks, with admission to trading slated for the end of July.
About the Niagara Gold Project
Niagara project is roughly 6 kilometres southwest of Kookynie, in the middle of the Norseman-Wiluna greenstone belt in the central Goldfields of Western Australia.
The project consists of one granted exploration licence and eight prospecting licences, accessed by the Goldfields Highway from the town of Menzies and the sealed Kookynie Road.
Historical mine records show production of around 5,100 ounces of gold at a grade of 25.8 g/t between 1898 and 1914.
In February, GTI advised the ASX of the execution of a binding tenement sale and purchase agreement over the Niagara Gold Project to Regener8 via an IPO on the ASX.