Business
Finalised Sale of 50% Interest in Georgian Assets
Finalised Sale of 50% Interest in Georgian Assets.
About this update from Empire Metals Limited
[{"type":"text","content":"\n \n \n \n RNS Number : 0582B\n Empire Metals Limited\n 07 June 2021\n \n \n \n \n Empire Metals Limited / AIM: EEE / Sector: Natural Resources\n \n \n 7 June 2021\n \n \n \n Empire Metals Limited \n \n \n ('Empire' or the 'Company')\n \n \n \n Conclusion of Sale of 50% Interest in Georgian Copper & Gold\n \n \n \n \n \n Empire Metals Limited, the AIM-quoted resource exploration and development company, is pleased to announce that it has concluded an agreement to sell its 50% holding in Georgian Copper & Gold JSC for an all-cash consideration of US$3.3 million. The proceeds will put Empire in a strong financial position to continue to create shareholder value principally from its Eclipse and Central Menzies Gold Projects in Western Australia.\n \n \n \n \n \n Sale Agreement\n \n \n On 26 October 2020, the Company announced that it had entered into a sale and purchase agreement with Candelaria Mining Corporation ('CAND') for the sale of the Company's wholly owned subsidiary GMC Investments Limited ('GMCIL') (the 'CAND Transaction'), for an all-shares consideration. GMCIL is the owner of a 50% interest in JSC Georgian Copper and Gold ('GCG'), which in turn holds the rights to copper-gold projects under a 30-year mining concession in Georgia. This transaction was subject to a number of conditions including a Right of First Refusal ('ROFR') held by Caucasian Mining Group ('CMG'), the Company's partners in Georgia and the owners of the other 50% of GCG.\n \n \n \n \n \n CMG advised the Company that it intended to exercise its ROFR but due to certain aspects of the CAND Transaction being directly related to CAND being a listed company, it was not possible to directly match the CAND offer and to provide the Company with confidence that the Company would receive the full consideration included in that offer. However, this also prevented the Company from proceeding with the CAND Transaction.\n \n \n \n \n \n As a result, the parties commenced negotiations and have now entered into a Sale and Purchase Agreement for the sale of the Company's 50% interest in GCG to CMG for a single cash payment of US$3.3 million. \n \n \n \n \n \n The Company and CAND have agreed to mutually terminate the agreement announced on 26 October 2020.\n \n \n \n \n \n The Board has concluded that the CMG off...