Declan Resources Inc. said July 6 that it entered into an arm's length agreement to acquire private companies Tisova Pty Ltd. and TGER Pty Ltd.
The companies hold two concession and four concession application parcels, comprising 15,929 hectares in the Czech Republic and Germany, that are prospective for copper-cobalt mineralization.
Under the terms, the company will pay C$60,000 in cash to the vendors upon execution of the agreement and issue 1.5 million shares on closing.
Declan also agreed to spend C$1 million on the properties and issue 2.5 million shares by July 1, 2019. The company will then spend an additional C$1 million on the properties each year by July 1, 2022, and issue an additional 4 million shares.
Additionally, the company plans to raise up to C$2 million in a private placement, with the proceeds to be used to begin exploration work on the assets and for general working capital.
Declan is starting a comprehensive exploration program on the properties and has committed to incur a minimum of C$500,000 to identify diamond drill targets by Oct. 31. It has 10 business days after drilling targets have been identified to close the transaction.