TORONTO (miningweekly.com) – Canadian diversified miner Teck Resources has acquired 1.5-million units of explorer Artha Resources.
This followed an April 23 agreement between Artha and Teck's Argentina subsidiary to terminate the Aguilar option agreement, eliminating Artha’s liability of C$696 000 in firm expenditure commitments and its obligation to complete a minimum of 4 000 m of diamond drilling or a combination of reverse circulation and diamond drilling on the property before October 31.
The units had a deemed price of $0.12 each and comprised one common share and half a warrant, with each whole warrant entitling the holder to buy, for 24 months from the date of issuance, one common share of Artha at $0.18 apiece.
Combined with previous holdings, Teck now held 1.75-million Artha common shares and 750 000 warrants. Should it exercise the warrants it would hold about 23.9% of Artha's outstanding stock. Any exercise of warrants that would result in Teck owning more than 19.9% of Artha's outstanding common shares would be subject to approval by Artha shareholders.