Business
Option Agreement Ferrum Resources Limited
Option Agreement Ferrum Resources Limited.
About this update from Emmerson Plc
[{"type":"text","content":"\n \nFor Immediate Release: 10 May 2011\n\n Emerging Metals Limited \n (\"EML\" or the \"Company\") \n \n Option Agreement to acquire a 37.5 per cent. interest in Ferrum Resources Limited \n\nEmerging Metals Limited (AIM: EML) announces that on 9 May 2011 it executed a\nput and call option agreement (the \"Option Agreement\") with Ferrum Resources\nLimited (\"Ferrum\"), an iron ore exploration and development company with\ninterests in Sierra Leone, Guinea and Central African Republic (\"CAR\").\n\nUnder the terms of the Option Agreement,\n\n * Ferrum has granted the Company a call option (the \"Call Option\"), for a\n consideration of US$1;\n \n * the Company has granted Ferrum a put option (the \"Put Option\"), for a\n consideration of US$1;\n \n * under the Call Option, the Company can exercise its right to subscribe for\n 26,228,570 new ordinary shares in the capital of Ferrum (the \"Option Shares\n \") at a price of US$0.305 each (the \"Subscription Price\") provided that the\n Call Option is exercised within 120 days of the date of the Option\n Agreement, subject to extension in the case of a third party offer for all\n or any part of Ferrum's issued ordinary shares;\n \n * under the Put Option, Ferrum can require the Company to subscribe for the\n Option Shares (at the Subscription Price) at any time within 60 days of the\n date the Option Agreement save that the Put Option can only be exercised if\n Ferrum has received a legal opinion from its Sierra Leone counsel (in a\n form satisfactory to the Company) (\"Sierra Leone Legal Opinion\") confirming\n its interests in, and the good standing of, five exploration licenses in\n the country;\n \n * in each case the aggregate Subscription Price shall be US$7,999,713.85 (the\n \"Subscription Amount\");\n \n * in aggregate, the Option Shares will, if issued, constitute 37.5 per cent.\n of the enlarged issued share capital of Ferrum;\n \n * if the Company holds 10 per cent. or more shares in the capital of Ferrum\n then it will be entitled to have one director on the board of directors of\n Ferrum while if it holds 30 per cent. or more shares in the capital of\n Ferrum then it will have the right to appoint two directors to the board\n (one of whom shall be the Chairman of the board); and\n \n * on exercise of the Call Option or the Put Option and for so long as EML is\n a shareh...