Business
Update on potential sale of Licences in Botswana
Update on potential sale of Licences in Botswana.
About this update from African Pioneer Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 9031N\n African Pioneer PLC\n 04 October 2021\n \n \n \n \n 4 October 2021\n \n \n African Pioneer Plc\n \n \n (\"African Pioneer\" or \"the Company\")\n \n \n Revised arrangements for exploration \n \n \n and potential Sale of Kalahari Copper Belt Licences \n \n \n \n \n \n \n \n \n \n \n \n African Pioneer plc (\"APP\" or the \"Company\") announces that, in place of the existing arrangements, it has on 2 October 2021 entered into a two year option agreement with ASX listed Sandfire Resources Limited ( ASX:SFR) (\"Sandfire\") in relation to 4 of its 8 Botswana prospecting licences for a cash payment of US$500,000 and the issue of 107,272 Sandfire shares and a 24 months exploration expenditure commitment of US$1,000,000 (the \"Option Agreement\"). The Company has entered into the Option Agreement to allow an acceleration of exploration activities on the 4 Kalahari Copper Belt prospecting licences the subject of the Option Agreement (the \"Included Licences\") funded by Sandfire. Funds received will also allow the Company to accelerate exploration activities on the Company's 4 other prospecting licences in Botswana and its projects in Namibia and Zambia.\n \n \n \n \n \n Highlights of Option Agreement:\n \n \n \n Option Agreement Payments to APP:\n \n Sandfire will on 8 October 2021:\n \n \n \n \n \n 1) pay to the Group US$500K in cash in relation to the cash component of the option fee for the right to acquire the Included Licences; and\n \n \n \n \n \n 2) issue 107,272 Sandfire ordinary shares (\"Sandfire Shares\") to the Company with a current market value A$565K (approx. US$407K) based on the closing Sandfire share price of A$5.27 per Sandfire share on 1 October 2021 (being the last trading date before the date of this announcement) to settle the share component of the option fee and a guarantee fee due to the Company. The Sandfire Shares do not have any trading restrictions. \n \n \n \n \n \n \n Exercise and Option Period:\n \n The option can then be exercised within 2 years of the Option Agreement (the \"Option Period\") to acquire the Included Licences for US$1. Sandfire has the right to extend the Option Period by 1 year by the payment of a US$500,000 option extension fee. \n \n \n \n \n \n \n Exploration Com...