6th Dec 2024 16:26
Nativo Resources PLC - Latin America-focused exploration company with interests in precious metals mining and production in Peru - signs binding term sheet to acquire Morrocota gold mine in Arequipa province, Peru for GBP124,557 to be satisfied through issuing 4.3 million shares to unnamed vendors at 0.00288 pence per share - a 15% premium to its Thursday close. Nativo says Morrocota mine is targeting the same mesothermal quartz vein systems being exploited at Bonanza and expects it to be in production in 3 months. Says it will own 100% of Morrocota's mine and production through a wholly owned Peruvian subsidiary with the transaction conditional upon regulatory approval that is expected to take several months. Chief Executive Stephen Birrell says: "This is a great opportunity to accelerate gold production and cashflow, bringing two neighbouring mines together.. We are effectively buying a mine in development which will deliver early cash flow by the second quarter of 2025."
Firm says vendors have unconditionally agreed to invest in Nativo through immediate cash subscription at the issue price. Says they will hold approximately 7% of Nativo upon issue of consideration and subscription shares.
Current stock price: flat at 0.0025p on Friday afternoon in London.
12-month change: down 75%
By Christopher Ward, Alliance News reporter
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