PERTH (miningweekly.com) – ASX-listed Latitude Consolidated has completed the divestment of its Mt Ida gold project, in Western Australia, to fellow-listed Alt Resources.
The two companies in January struck a deal under which Alt would make an initial cash payment of A$400 000 within seven days of signing a heads of agreement, and issue A$750 000 in tradeable fully paid ordinary shares, with a voluntary escrow period of six months from the date of completion.
The issue of shares pursuant to the acquisition of the assets may be subject to shareholder approval.
Alt would also grant A$250 000 of options over fully paid ordinary shares, being 3.12-million options, with each option having an exercise price of 8c apiece and being exercisable for three years from date of issue.
Alt would also make a cash payment of A$600 000 to Latitude on or before April 30.
Latitude said on Friday that the company would maintain full interest in both the Gecko North and Levers Well gold projects, and would continue to pursue the exploration of these projects, as well as other exploration opportunities that had the potential to deliver shareholder value.
Meanwhile, Latitude’s purchase of a 70% interest in the Mbeta lithium project, in Zimbabwe, was continuing, with the company expecting to finalise the acquisition later this quarter.
Under the terms of the agreement, Latitude will pay the owner of the project $50 000 in cash on the signing of an agreement, as a non-refundable deposit. A further $50 000 will be payable on the registration of the transfer of the Mbeta claims into a joint venture (JV) vehicle.
Latitude would also issue the project owner, or its nominees, some six-million fully paid ordinary shares, within seven days of shareholder approval, while also financing all exploration by the JV up to the completion of a definitive feasibility study.
As part of the transaction, Latitude will raise A$3.45-million through the placement of 138-million shares, priced at 2.5c each. The placement will be undertaken in two tranches, with the first tranche to be conducted under the company’s existing placement capacity, and raising A$491 000.
The second tranche placement, which will raise A$2.95-million, will be subject to shareholder approval.