1st Nov 2021 18:19
All Star Minerals PLC - Haywards Heath, England-based mining services investor - Following due diligence, has extended and renewed its heads of terms agreement for the acquisition of a company with a suite of diamond assets.
As a result, the agreement for the potential acquisition of an unnamed gemstone company has been terminated.
All Star Minerals in May has signed two deals separately to acquire each company, however on Monday the group said the diamond company offers "A suite of assets providing exposure to high-quality white and coloured diamonds that ASMO believes has the potential to deliver significant returns to shareholders, and an existing financing and off-take agreement in place with a group of third-party industry stakeholders to support initial set-up, production and early-stage revenue flows".
"Considerable progress has been made with respect to desktop, market and other forms of due diligence investigations being undertaken, together with numerous stakeholder meetings and extensive interaction with key parties, followed by a site visit to the Diamond Company. Significant progress has been achieved within this target company since the signing of our initial HoT, including a doubling of the size and number of key assets, an extended and somewhat exciting company structure having been formed and much needed financing arrangements having been put in place, together with an associated off-take agreement, to support initial operations, and positive cash flows," says Chief Executive Officer Ian Harebottle.
Current stock price: 0.0375 pence
Year-to-date change: down 6.3%
By Dayo Laniyan; [email protected]
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