Laconia Resources Ltd. said Jan. 31 that it entered into a binding agreement to acquire Kraaipan Founders Pty. Ltd. and all its subsidiaries, which hold 100% of the Kraaipan gold-nickel-copper-platinum group metals project in Botswana.
Under the terms, Laconia paid a nonrefundable deposit of A$50,000 to secure the exclusive right to acquire the project. The company will pay a further of A$50,000 upon completion for past expenses.
In addition, Laconia is required to issue 450 million shares to the vendors or their nominees on completion at a deemed issue price of 0.2 Australian cent apiece.
The vendors will be granted a 1% net smelter return royalty on all processed mineral products sold from the project.
Moreover, Laconia will issue additional shares to the vendors or their nominees upon achieving certain project milestones.
No person will acquire a relevant interest of greater than 20% in the company or as a result of the shares issued at completion of the acquisition.
The deal is subject to certain conditions, including both parties completing due diligence by Feb. 28 and the signing of a definitive sale and purchase agreement. Meanwhile, Laconia will raise A$2.4 million by March. 31, among others.
The Kraaipan project comprises a single but extensive prospecting license, PL232/2016, covering 866 square kilometers.
The company plans to immediately initiate an extensive exploration program utilizing geochemical and geophysical techniques successfully employed in Australia but not applied in this terrain.
Additionally, Laconia anticipates to seek approval from shareholders for a consolidation of securities on issue on a 1-for-10 basis.