Dragon sells Weld Range shares to new investor
PERTH (miningweekly.com) – ASX-listed Dragon Mining has restructured the share sale agreement of its 39.95% interest in Weld Range Metals, which owns the Weld Range project, in Western Australia.
In July last year, Dragon agreed to a share buy-back agreement with Weld Range Metals, with Weld Range expected to buy back more than 48.22-million of its shares, for a A$1-million consideration.
However, Dragon said on Monday that the company had instead executed a share sale agreement with Ausinox, at the request of Weld Range Metals.
Ausinox would buy about 10.3-million Weld Range shares from Dragon Mining, while the A$3.78-million debt Weld Range owed to Dragon Mining would also be assigned to Ausinox.
Consideration payable to Dragon Mining is A$1-million.
“At Weld Range’s request, this is a change in structure to what was originally proposed, but the outcome for Dragon Mining remains the same,” said Dragon executive director Brett Smith.
There were no conditions precedent to the new agreement, and the transaction would likely be completed by the end of January.
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