9th Apr 2015 08:30
LONDON (Alliance News) - Wildhorse Energy Ltd Thursday said it has agreed to fully acquire an Australian company that owns two large salt lake brine projects in the west of the country in an all-share deal.
Wildhorse said it will fully acquire Australia Salt Lake Potash Pty Ltd and said the two projects both have "excellent potential" to produce sulphate of potash for domestic and international markets.
In return, Wildhorse will issue Australia Salt Lake with 15.0 million Wildhorse shares, issued at the mid-market price when the market closes on the day prior to issue, and a series of performance based convertible shares.
The performance based shares consist of 5.0 million unlisted convertible performance shares, which can be converted into normal shares once a pre-feasibility study has been completed on both licenses, 7.5 million to be converted once a definitive feasibility study on both projects has been completed, and another 10.0 million that can be converted once mining commences at the project.
The agreement may also lead to Wildhorse providing Australia Salt Lake with a limited loan facility to allow the company to conduct exploration work, it said.
The deal is subject to Wildhorse shareholders approving the deal.
The two projects that the company will inherit from the acquisition are the Lake Wells and Lake Ballard projects. The Lake Wells project covers three exploration licenses, with three additional exploration license applications pending, whilst the Lake Ballard project consists of three exploration license applications.
Wildhorse shares were up 21% to 7.58 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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