15th Nov 2016 10:59
LONDON (Alliance News) - Nyota Minerals Ltd on Tuesday said it has signed an agreement to move beyond its core mining focus by reversing into Philippines-based BigDish Ventures Ltd.
Nyota, which owns the Ivrea nickel and copper project in Italy, said it has agreed an agreement for BigDish to provide debt funding to Nyota and to start the process of Nyota acquiring BigDish.
BigDish runs a digital privilege card business for the restaurant sector. It allows restaurants to offer varying discounts at different times of the day, with a view to increasing the number of diners visiting eateries at off-peak times. It currently has partners in the Philippines signed up and is planning to expand further in the south east Asia region.
It will provide Nyota with a GBP200,000 loan to be used for general working capital purposes and to cover initial due diligence and costs related to the proposed acquisition of BigDish by Nyota.
The loan is available to be drawn down immediately at an interest rate of 8.0% a year and will be repayable via conversion into Nyota shares.
The acquisition proposed would amount to a reverse takeover by Nyota and, as such, its shares were suspended from trading on Tuesday.
Should the agreement go ahead, Nyota said BigDish shareholders would own more than 50% of the combined business.
Nyota also noted that its chairman, Jonathan Morley-Kirk, is a former director of BigDish Ventures.
By Sam Unsted; [email protected]; @SamUAtAlliance
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