Mustang renegotiates acquisition agreements
PERTH (miningweekly.com) – Mozambique-focused Mustang Resources has amended the acquisition agreements over its graphite, diamond and ruby projects, allowing the company to effectively reduce potential shareholder dilution by a nominal value of up to A$23.4-million.
This represented a reduction in potential dilution from 59% to 26%.
Under the terms of its current asset agreement with vendors, Mustang would issue up to 153-million, or A$30.6-million worth of share performance rights, including A$5.9-million of performance cash payments.
However, Mustang said on Friday that, following an independent assessment of the performance share rights, and negotiations with vendors, Mustang would cancel the performance share rights and the performance cash payments, and instead issue the vendors with ordinary shares in lieu of the cancellation.
The company would now issue some 36.2-million, or A$7.2-million, worth of ordinary shares.
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