7th Oct 2016 07:25
LONDON (Alliance News) - Mariana Resources Ltd on Friday said it has signed a binding term sheet to acquire an 80% stake in a private gold exploration company operating in the Ivory Coast in an all-share deal worth an initial USD544,274.
The miner is set to acquire the majority stake in Awale Resources SARL by issuing shares based on the volume weighted average trading price of its shares over the past 45 days. Mariana shares were up 3.3% to 63.00 pence per share on Friday morning, meaning roughly 700,000 Mariana shares will be issued to current Awale shareholders.
Mariana also agreed to loan Awale USD55,725 to settle some loan obligations and said it is happy to settle "certain outstanding obligations" of up to USD89,000.
Awale sellers will retain a 20% stake in the company, and Mariana will make additional bonus payments to them dependent on certain milestones being reached. The London-listed miner will pay them 50.0 cents for each ounce within any reported gold or mineral resources up to 1.0 million ounces and USD1 for each ounce thereafter - to a maximum of USD3.5 million.
Awale is focused on the eastern border of the country at Bondoukou, with three granted licences and four licenses under application.
In a separate statement, Mariana said it has issued 70,000 new shares at a price of 20.0 pence after some options were exercised.
By Joshua Warner; [email protected]; @JoshAlliance
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