Red Mountain Mining Ltd. said Oct. 1 that it reached a binding deal with the vendors of HPA Resources Pty. Ltd. to acquire the Mount Kokeby kaolin project in Western Australia, on top of its previously announced deal to secure the Mount Mansbridge rare earths and nickel-cobalt project.
The Mount Kokeby project, covering an area of 84 square kilometers, consists of exploration license E70/5205 and exploration license application E70/5284.
Under the deal, it may pay A$500,000 in cash to the vendors and issue 310 million shares to acquire both projects, following a 28-day exclusive due diligence period.
A further 100 million shares, plus A$300,000 in shares, is payable upon meeting certain milestones for the Mount Kokeby project. A deferred payment of A$500,000 in cash, A$1 million in shares and a 1% net smelter returns royalty is payable upon the completion of a feasibility study at Mount Mansbridge.
Meanwhile, Red Mountain announced it will not proceed with the acquisition of the Kilembe copper slag project in Uganda, following the completion of due diligence proceedings.
