Business
Proposed acquisition of Ebony Iron Pty Ltd
Proposed acquisition of Ebony Iron Pty Ltd.
About this update from Strategic Minerals Plc
[{"type":"text","content":"\n \nRNS Number : 6487M Strategic Minerals PLC 19 August 2011 \n \n\n19 August 2011\n \nStrategic Minerals plc\n(\"Strategic Minerals\", \"SML\" or the \"Company\")\n \nSML proposed acquisition of Ebony Iron Pty Ltd (\"Ebony\")\n \nStrategic Minerals Plc (AIM: SML) today announces that it has entered into a heads of terms agreement with Ebony, a privately held Australian mining company, for its acquisition (the \"Acquisition\"). The Acquisition is subject to the completion of satisfactory due diligence and Strategic Minerals agreeing a sale and purchase agreement with the shareholders of Ebony (\"SPA\"). Further announcements will be made in due course.\n \nIt is intended that under the SPA Strategic Minerals will acquire 100% of the issued share capital of Ebony for a consideration of 10 million pounds sterling to be satisfied by the issue of 100 million new fully-paid ordinary shares in SML to Ebony at an issue price of 10 pence per share. Ebony shareholders will, in aggregate, receive a further consideration of 50 million new ordinary SML shares subject to the confirmation of an Australasian Joint Ore Reserves Committee Code (\"JORC\") indicated resource of a minimum of 200 million tonnes of iron ore by Ebony.\n \nThe board of directors of SML (the \"Board\") considers the acquisition to be an excellent opportunity for the Company, providing it with positive cash flow within the short term and access to additional iron ore production and exploration assets, while strengthening the Board and Company management.\n \nEbony has revenue generating assets comprising magnetite stockpile which are already contracted or in negotiation and a full update will be made in due course. Stockpile projects eliminate mining risk and are production ready.\n \n \nAdditional Ebony assets comprise:\n \n· the iron ore rights to three tenements in the Northern Territory of Australia (the \"Northern Territory\") close to known iron ore reserves; and\n· in addition, negotiations are underway to acquire the iron ore rights on a further two tenements in the Northern Territory and the iron ore rights to four tenements in Western Australia close to known iron ore reserves and infrastructure.\n \nOn completion of the Acquisition, it is the intentio...