Tando Resources Ltd. signed a binding agreement to acquire 74% of the SPD vanadium project in South Africa through an all-scrip deal, the company said March 22.
The company will acquire 100% of the issued capital in Steelpoortvan Pty. Ltd., which holds a right to acquire 74% of project owner Vanadium Resources Pty. Ltd.
The remaining 26% of Vanadium Resources is held by the Steelpoort Development Trust, in trust for the communities of Ga-Malekane and Ga-Masha and broad-based black economic empowerment entities Obeec Pty. Ltd. and the Math-pin Trust.
Tando will issue 35 million shares at a deemed price of 30 Australian cents apiece on the achievement of milestones. The company will also issue 7 million options to the vendors and 13 million options to the advisors.
As part of the deal, Martin Pawlitschek will join Tando's board as a nonexecutive director. Meanwhile, Tando intends to raise A$2 million via a placement of shares at 40 Australian cents per share to fund due diligence and initial work at the SPD project.