JOHANNESBURG (miningweekly.com) – Aim-listed Savannah Resources has increased its interest in Matilda Minerals, which holds the prospecting rights to the 180 km2 Jangamo heavy mineral sands tenement, in Mozambque, to 100%, by acquiring a further 20% equity interest in the entity.
This 20% interest has been secured in consideration of A$100 000, payable through the issue of 1.19-million ordinary shares of 1p in the company at an issue price of 5.056p.
"We're pleased to have reached agreement with the vendors of Matilda to eliminate the deferred consideration obligations from the 2013 acquisition and also to finalise the purchase of the 20% not already owned by Savannah. This transaction has been approved by the Mozambique Ministry of Mineral Resources, which has been very supportive of our activities in country," Savannah CEO David Archer said in a statement on Monday.
Application will be made for the consideration shares, which rank pari passu with the existing ordinary shares in the company, to be admitted to trading on Aim. Following admission, the company's total issued share capital will comprise 56.42-million ordinary shares.