24th Feb 2020 15:06
(Alliance News) - Global Resources Investment Trust PLC on Monday noted an announcement by ASX-listed explorer TerraCom Ltd that it has executed a binding term sheet for the acquisition of bauxite developer Anglo African Minerals PLC.
Shares in the investment trust were 20% higher at 4.50 pence on Monday afternoon in London.
GRI has a 25% shareholding in Anglo African Minerals, and outstanding loans plus interest of USD1.9 million.
The deal is subject to customary conditions, including due diligence and regulatory approvals. In return for an exclusivity period until the end of August, TerraCom will pay a USD500,000 refundable deposit.
Anglo African Minerals' assets consists of three bauxite mines in the development stage.
"This is a very sensible deal for TerraCom shareholders and endorses our entry into Africa to further diversify our geographic and commodity base through an exciting and highly rewarding emerging market sectors," said TerraCom Chair Wal King.
By Dayo Laniyan; [email protected]
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