Business
Proposed Acquisition of Casa Mining Ltd.
Proposed Acquisition of Casa Mining Ltd..
About this update from Arc Minerals Limited
[{"type":"text","content":"\n\n \n Ortac Resources Limited 06 November 2017 \n\nOrtac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining & Exploration\n6 November 2017\nORTAC RESOURCES LTD \n(\"ORTAC\" or the \"COMPANY\")\n \nProposed Acquisition of Casa Mining Ltd.\n \nOrtac Resources Ltd (\"Ortac\") is pleased to announce that it entered into a binding agreement on 4 November 2017 to acquire an additional 33.82% of the issued share capital of Casa Mining Ltd (\"Casa\") (the \"Acquisition\") and will be making an offer for the balance of the issued share capital of Casa. \nOrtac has also agreed, subject to closing of the Acquisition and simultaneous with closing of the Acquisition, to convert the US$2mn convertible loan note previously issued to the Company by Casa at an amended reduced share conversion price of US$0.5586 (the \"Loan Note\").\nFollowing the Acquisition and conversion of the Loan Note, Ortac will hold 7,848,594 shares of Casa, representing 70.09% of the issued share capital in Casa, before an offer to acquire the remaining issued share capital from the minority shareholders of Casa.\nThe Acquisition represents a major step forward in the delivery of the Company's revamped strategy, announced on 11 September 2017, to focus on its high potential African exploration mining assets. The board believes the acquisition of Casa presents a valuable near term opportunity for Ortac and its shareholders with recent drilling results indicating a potential gold resource in excess of 2 million ounces. \nDetails of the Acquisition\nOrtac has contractually committed to acquire 33.82% of the issued share capital of Casa (\"Sale Shares\"). The consideration for the Sale Shares is to be satisfied by the issue of 38,277,354 new ordinary shares of no par value in Ortac (\"Ordinary Shares\") at a deemed price of 2.875 pence per share, being the closing mid-market price of Ordinary Shares on 3 November 2017 and is to be settled once the acquisition of the Sale Shares has occured (\"Closing\"). Closing is conditional, inter alia, upon Ortac making an offer (\"Offer\") to purchase the remaining shares in Casa (not currently held by Ortac)on the same terms as the acquisition of Sale Shares.\nOn Closing the following will occur:\n· the terms of the Loan Note will be varied to amend the conversion...