15th Apr 2021 13:21
(Alliance News) - Shares of IMC Exploration Group PLC rose by almost two thirds on Thursday afternoon after announcing it had provisionally agreed to buy a gold mine in Armenia via a reverse takeover.
Shares in IMC Exploration were trading at 1.35 pence in London on Thursday afternoon, up 60%.
The Irish precious and base metals mining project developer said it had conditionally agreed to purchase the Karaberd gold mine in Armenia. The acquisition will take effect via the reverse takeover of MVI Ireland sro from Mineral Ventures Invest spol sro. MVI Ireland owns Assat LLC, which holds the operating license for the Karaberd mine.
If the acquisition goes ahead IMC will hold the Karaberd mine operating licence, together with an ore-crushing production facility located nearby.
IMC said the acquisition involved issuing "several tranches of shares" to MVI, with each tranche being conditional on the occurrence of certain milestones. It said it will apply to issue shares that will equate to 51% of the new expanded total after the acquisition, meaning the seller will have control, making the transaction a reverse takeover.
IMC said the acquisition would benefit expanded group's working capital through the provision by MVI of EUR20,000 per month for two years, totalling EUR480,000.
The group will have the further benefit of a EUR650,000 deposit paid to China National Geological & Mining Corp by MVI, should IMC decide to complete a proposed eco-production facility at Karaberd by CGM.
IMC Chair Eamon O'Brien said: "The proposed acquisition will transform IMC by adding a mining project and will generate cash-flow for IMC from both the monthly contribution to working capital and future mining operations. Furthermore, the geographical reach of IMC will be extended outside of Ireland which may lead to further opportunities for growth of IMC."
By Will Paige; [email protected]
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