PERTH (miningweekly.com) − Perth-based explorer Talisman Mining will sell its Wonmunna and Uaroo iron-ore projects to Rico Resources, formerly known as E-Com Multi, for A$41,35-million.
Rico, which signed an option over the projects in November, would pay A$34,25-million in cash, of which A$2-million has already been received, as well as 35,5-million shares, postreconstruction, valued at A$7,1-million. Talisman would also receive a 1% royalty.
Talisman said on Monday that the settlement would take place during this week.
Settlement is conditional upon the successful completion of the capital raising by Rico under the prospectus scheduled to close on February 15. Talisman has been advised that Rico had firm commitments for a total of A$44,6-million in funds raised under the prospectus.
Talisman previously said that selling the iron-ore projects would result in a “major boost” to its cash resources, underpinning its ongoing copper/gold exploration activities in the Bryah basin and enhancing its ability to target new growth opportunities in Australia.
Talisman would also hold between 8,7% and 9,6% of Rico on an undiluted basis, post that company’s recapitalisation and capital consolidation.
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