Business
Conditional Acquisition of Further Stake in GMOW
Conditional Acquisition of Further Stake in GMOW.
About this update from Alba Mineral Resources Plc
[{"type":"text","content":"\n \nRNS Number : 6994U Alba Mineral Resources PLC 16 July 2018 \n\nClick on or paste the following link into your website browser to view the associated PDF document (including maps and images): \nhttp://www.rns-pdf.londonstockexchange.com/rns/6994U_1-2018-7-15.pdf \n \nAlba Mineral Resources plc\n(\"Alba\" or the \"Company\")\n \nAlba Signs Conditional Agreement to Increase Stake \nin Clogau Gold Project to 90%\n \nAlba Mineral Resources plc (AIM: ALBA), the diversified mineral exploration and development company, is pleased to announce that it has conditionally agreed to acquire a further 41 per cent interest in Gold Mines of Wales Limited (\"GMOW\"). Subject to Completion, Alba will thereby move to 90 per cent ownership of the Clogau Gold Project situated within the Dolgellau Gold Belt in Wales, United Kingdom (the \"Project\"). As previously announced, the Project comprises the Clogau Gold Mine and includes a large number of highly prospective gold targets and former gold workings within a total option area of 106.94 km².\n \nHIGHLIGHTS\n· Alba to acquire 41% of the Clogau Gold Project, taking its total ownership of the Project to 90%.\n \n· The remaining 10% of the Project will be free carried to commercial production, but will be subject to a put and call option effective from the grant of planning permission enabling Alba to move to 100% ownership in the future if so desired.\n \n· As part of the transaction, the vendor has agreed to assign to Alba in full the approximately £1 million in loans owed to it by GMOW.\n \n· The consideration payable for the acquisition is 185,714,285 Alba consideration shares (valuing the total consideration at approximately £650,000 based on a 30 trading day VWAP of Alba shares of £0.0035 up to and including 12 July 2018), plus a one for three Alba share warrant (ie 61,904,761 share warrants at an exercise price of £0.0042 and an expiry date of 27 March 2021). The Alba consideration shares will be subject to a seven month lock up/orderly marketing agreement.\n \n· Alba has agreed to grant a 4 per cent net smelter return royalty to the vendor, subject to a buy-back right in respect of any proposed future sa...