PERTH (miningweekly.com) – Junior Matsa Resources’ A$20-million sale of its Devon and Red October projects, in Western Australia, is under threat after buyer Linden Gold Alliance failed to meet its ASX listing deadline.
Matsa in December last year struck a deal with Linden to divest of the Red October and Devon projects for a mix of cash and shares. The transaction included a A$3-million deposit, a deferred A$5-million cash payment, and a A$12-million cash and share payment on Linden listing on the ASX.
However, Matsa said on Thursday that Linden had not received conditional approval for admission to the ASX by the September 28 deadline agreed under the terms of the sale and purchase agreements, and the subsequent amendments.
As a result, the buyer will be unable to settle the purchase of the Devon and Red October projects via the issue of shares and cash.
Linden now has five business days to adivse Matsa on whether or not it would complete the transaction via a A$12-million cash payment, with A$5-million in deferred cash as contemplated in the original sale and purchase agreement.
Matsa has already received A$3-million from Linden as a non-refundable deposit.