Eastern Iron Ltd. entered into a binding option agreement to acquire 100% of Ion Mining Pty. Ltd., which is developing the Przecznica cobalt project in Lower Silesia, Poland.
The company will pay A$120,000, which will give it an exclusive option to acquire Ion Mining at any time within the next six months.
Eastern Iron will issue 250 million common shares and 240 million performance shares for the acquisition.
The concession application for the 10.2-square-kilometer project area is pending, subject to a decision of the Polish ministry of environment, according to the Dec. 22 release.
Upon exercise of the option, the company will appoint Ion Mining's current managing director Rory McGoldrick as its CEO.
Eastern Iron will raise a total of A$3.5 million via an issue of 290 million shares at 1.2 Australian cents per share.
The funds will be used for the acquisition and exploration of Przecznica, exploration activities at the company's Nowa Nowa copper project and working capital.