PERTH (miningweekly.com) – Junior explorer Excalibur Mining has its eye on a manganese deposit in Zambia.
The ASX-listed junior reported on Thursday that the company would partner with Pinto Minerals to acquire a 75% shareholding in Maybach Mining Services, which holds the early stage production asset.
In exchange for its 50% interest in Maybach, with Pinto holding the remaining 25% interest, Excalibur would issue 10-million of its own shares and would provide a $250 000 convertible note fund to Maybach by the end of August this year, to fund the expansion of production at the Zambian asset.
Excalibur would also provide additional convertible notes of $350 00 by the end of February next year, to further expand production.
Once Maybach had achieved an earnings before interest, taxes, depreciation and amortisation (Ebitda) of $1-million over a 12-month period, Excalibur and Pinta would make a $300 000 milestone payment.
A further $500 000 would be payable, along with the issue of a further five-million shares in Excalibur, upon Maybach achieving Ebitda of $5-million over a 12-month period.
The transaction was subject to due diligence and shareholder and regulatory approvals.