Fraser Range Metals Group Ltd. said Aug. 23 that it conditionally entered into a binding term sheet to acquire Wildcat Resources Ltd., holder of the Mount Adrah gold project in New South Wales, Australia.
The buyer expects to complete due diligence by Sept. 20 and complete the deal by the end of October, subject to shareholder approval.
It will issue the vendors with 63.875 million ordinary shares at 1.6 Australian cents each and will issue 67 million A class performance shares, 67.0 million B class performance shares, and 20.0 million unquoted options exercisable at 4 cents each within three years after their issue.
Fraser Range also agreed to issue Force Commodities Ltd. 3.125 million shares at 1.6 cents apiece to partly satisfy Wildcat's obligations to acquire Mount Adrah from Force Commodities in 2018. Fraser Range said that once the deal closes, it intends to appoint Matthew Banks executive director and Alex Hewlett a nonexecutive director, while director Zane Lewis will step down.
Force Commodities entered into option agreements to sell its two Halls Peak silver project tenements but backed out this year after seeing strong market demand for the commodity, and it renewed its licenses for the project for six years.
