6th Nov 2015 08:58
LONDON (Alliance News) - CIC Gold Group Ltd on Friday said it has agreed to buy Gobi Minerals Ltd for GBP5.6 million, with the acquisition to be financed through an issuance to the sellers of 280.0 million CIC shares, each with a half warrant attached.
The deal, if completed, would be classed as a reverse takeover under stock exchange rules.
Gobi Minerals owns the interest in mineral title Tsagaan Suvarga gold and copper situated in the South Gobi region of Mongolia.
It is located near Mongolian Alt Corp now in production, CIC said.
"The mineral lease has no proven reserves or resources and is considered green field," the company said.
The acquisition is subject to a number of conditions. These include due diligence, a range of documentation, and the raising of additional equity finance.
Barsbold Ulambayar, independent non-executive director, was named executive director and chief operating officer by the company, with Geoffrey Cowley, the previous chief executive, appointed as non-executive technical director.
CIC Gold said it has begun talks with CIC Capital Fund Ltd in order to seek working capital for the enlarged company.
Shares in CIC Gold are currently suspended from trading.
By Samuel Agini; [email protected]; @samuelagini
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