PERTH (miningweekly.com) – The way has been cleared for ASX-listed Phoenix Gold to complete a strategic alliance with fellow-listed gold miner Evolution Mining, after the ASX granted a waiver from a listing rule.
The agreement will also not be subject to Foreign Investment Review Board approval.
At the start of May, Evolution inked an agreement to acquire a 19.9% stake in Phoenix Gold through the subscription of up to 105.9-million new shares for a total investment of A$9-million.
The first tranche of the transaction will see Evolution subscribe for 44-million fully paid shares in Phoenix, at an issue price of 7.5c a share, subject to certain conditions, including the average daily spot price for gold not falling below A$1 300/oz for three consecutive days prior to the completion of the first tranche placement.
The second tranche will consist of a further 61.9-million fully paid ordinary shares, priced at 9.2c each, and will be subject to shareholder and regulatory approvals. A shareholder meeting has been scheduled for June 23, Phoenix said on Thursday.
“We are pleased to be advancing satisfaction of conditions precedent to the agreement with Evolution. We look forward to the shareholder meeting in June where we aim to conclude the second tranche placement with Evolution and commence the accelerated exploration programme on our Zuleika project,” said Phoenix executive chairperson Dale Rogers.
Phoenix has advised shareholders to vote in favour of the transaction.