5th Feb 2016 09:04
LONDON (Alliance News) - Wishbone Gold PLC on Friday said it has acquired Precious Metals International Ltd, which holds a gold, precious metals and gem trading licence to operate in the United Arab Emirates.
Black Sand, which was established by its chief executive Barret Kosh in 2014 as a successor company to Multinational Commodities FZE, has agreements in place for importing gold from Colombia and Honduras with a pipeline of other supply deals from other parts of South America.
The PMI Group is 100% owned by Solent Nominees, a nominee company based in Gibraltar which holds the shares on behalf of Kosh. Solent currently holds preference shares over the PMI Group which will continue to entitle the investor to 30% of any annual audited profits after tax in the PMI Group.
The terms of the acquisition are an initial payment of 240.0 million shares in Wishbone, with a further 240.0 million shares to be issued once PMI Group's annual profit after tax exceeds USD1.0 million. That means Wishbone will initially pay GBP648,000, based on the closing mid-market share price of 0.27 pence on Wednesday earlier this week. Solent Nominees now has a 24% stake in Wishbone. Shares in Wishbone were up 14% at 0.297p on Friday morning.
"This moves Wishbone into a position where rather than being just another exploration company with promising properties it will now be in a position where it also has the support of cash flow from the trading operations in Dubai," Richard Poulden, chairman and chief executive, said.
By Samuel Agini; [email protected]; @samuelagini
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