13th May 2016 11:07
LONDON (Alliance News) - Exploration company Kodal Minerals PLC on Friday said Taruga Gold Ltd shareholders have approved Kodal's buy of Taruga Gold's subsidiary International Goldfields (Bermuda) Ltd, which holds a string of gold exploration assets.
Kodal said in April it had entered into a conditional agreement to purchase Taruga Gold's subsidiary International Goldfields. At the time, Kodal said acquisition was conditional upon a shareholder vote, under the deal, Kodal plans to issue shares to Taruga and conduct an additional fundraising, which will make its share capital multiply by 3.6.
Kodal is also proposing the appointment of Bernard Aylward as its new chief executive. If the acquisition goes through, Aylward will be appointed to Kodal's board. Aylward has served as the managing director of Taruga Gold and is also a director of the subsidiary set to be acquired by Kodal.
On Friday, Kodal said Taruga's shareholder had approved the sale of its subsidiary and authorised the distribution of Kodal shares.
Kodal is also holding a general meeting to propose resolutions to effect the acquisition and the accompanying fundraising Friday.
Shares in Kodal were up 50% at 0.0600 pence on Friday.
By Hannah Boland; [email protected]; @Hannaheboland
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