PERTH (miningweekly.com) – ASX-listed Auroch Minerals has appointed legal council to assist in fighting a claim from fellow-listed Big Un following the termination of an acquisition agreement over three prospecting licences in Mozambique.
In June 2014, Auroch and Big Un, then known as Republic Gold, signed a conditional agreement under which Auroch would acquire Big Un subsidiary African Stellar Mozambique in exchange for more than 6.5-million shares and 6.5-million options, exercisable at 15c each.
The agreement had been subject to a number of conditions precedent, including Ministerial consent and regulatory approvals. The agreement originally had an end date of October 2014, which was extended to the end of June this year.
The end date was again extended to the end of September, after the conditions precedent were not met.
Auroch said on Wednesday that given the significant amount of time that transpired between the execution of the agreement and the end period, Auroch provided notice to Big Un that the agreement had been terminated.
Big Un was now claiming the Auroch shares that were due to it under the agreement, which were valued at around A$533 000, based on Auroch’s current market price.
As a result, Auroch has engaged legal council to assist with the claim.