Business
Ubique Minerals to Acquire up to 80% of the Port Loko Bauxite Deposit and Partially Developed Mine in Sierra Leone
TORONTO, ON / ACCESSWIRE / August 5, 2021 / Ubique Minerals Limited ("Ubique")(CSE:UBQ) is...
About this update from Ubique Minerals Ltd.
[{"type":"text","content":"Ubique Minerals to Acquire up to 80% of the Port Loko Bauxite Deposit and Partially Developed Mine in Sierra LeoneTORONTO, ON / ACCESSWIRE / August 5, 2021 / Ubique Minerals Limited (\"Ubique\")(CSE:UBQ) is pleased to announce that it has entered into an exclusive, non-binding Memorandum of Understanding (\"MoU\") to earn-in up-to 80% of Alumina Ventures Ltd (\"AVL\") shares. AVL is 100% owner of the Port Loko Bauxite deposit and partially developed mine in Sierra Leone.The OpportunityAlumina Ventures Ltd is a Sierra Leone registered private company that holds large scale mining licence ML10-2021 for the historic Port Loko Bauxite project. The Port Loko Bauxite project was developed by SierraMin towards production from 2016 to the end of 2020 and was acquired by AVL in May 2021. The mine had started its pilot plant phase but operations were halted in late 2020 COVID related. AVL acquired all of SierraMin assets in April 2021.The board of directors of Ubique after undertaking initial due diligence have determined to move into final discussions and legal agreement with AVL towards the completion of an agreement as follows:The commercial terms of the acquisition/earn-in.The company and AVL signed a MoU on the 8th July 2021 with the following conditions.UBQ will have the option to earn a 51% stake in the Port Loko Bauxite project in Sierra Leone by:Spending a minimum of US$3m on infrastructure and project costs in the Port Loko project and;Making a commercial production shipmentUBQ can invest US$5m and acquire further 29%UBQ will agree that the current shareholders of AVL will receive a 2.5% Royalty and that both parties shall negotiate a buy back price.UBQ shall at the signing of this document transfer U$25,000.00 to AVL as a loan payable upon demand. DoneAVL shall grant UBQ 30 days exclusivity to the transaction as described above to carry out due diligence and structure a more detailed transaction document. DoneUBQ has the right to extend that period by 60 days by further advancing AVL U$50,000.00. DoneThe company will use the next 60 days to finalise legal agreements and due diligence on the project.Funding of the projectThe company is in advanced discussion with investors to fund the earn-in/acquisition by a way of a convertible loan facility but does not preclude the use of alternative sources of funding in addition.Vilhjalmur...