Buxton Resources Limited (ASX: BUX; “Buxton”) and New World Cobalt Limited (ASX: NWC; “New World”) have entered into an agreement to acquire its West Kimberley Project. This project comprises of New World’s interest in three adjacent dwellings which is touching Buxton’s Merlin prospect. New World’s WK Project consist of the north-western continuation of the geological sequence that connects Buxton’s Merlin (Double Magic) Prospect. Within the Ruins Dolerite, this project is considered to have high potential for mineralization of additional Ni-Cu-Co sulphide. The key terms and conditions associated with the acquisition of WK Project which comprises New World’s will include 100% interest in E04/2423. The company has right to acquire 80% interest in E04/1972 as well as E04/2314. Consideration payable to New World consist of the issue of 1,333,333 fully paid ordinary shares of Buxton on completion. An additional share needs to be issued worth $250,000 once Buxton makes an announcement that it has intersected in drilling on the WK Project on grade thickness basis. Also, the company needs to announce that it has a JORC compliant resource within the WK project. Once the announcement is made, another additional shares worth $250,000 will be issued. In case JORC compliant resource exceeds 15,000 tonnes of contained nickel equivalent within the WK projects, within 5 days post announcement there will be issue of additional shares equal to AUD $500,000. Further, each of the case discussed above, shares issued to the New World will be based on the 10-day VWAP earlier to the date when the company meets its relevant milestone.
Since the company started its journey, the performance of the company is 295.57%. The 1 year, 5 years and 10 years performance of the company is 25%, -24.24% and 295.57% respectively. For the year ended 30 June 2018, the company made a net loss of $3,258,505. The total assets of the company are $3,001,551 and the total liabilities of the company is $122,505. This indicates that the company has potential to meet its long-term obligations. The total current asset of the company is $ 2,267,872 and total current liabilities is $122,505. This indicates that the company has ample funds to meet its working capital as well as the short-term obligations. The total shareholders equity is worth $2,879,046. The net cash outflow from operating activities is $3,257,477 where the major cash outflow was due to payments made to suppliers and employee and the expenditure on mining interest. The net cash outflow from investing activities is $130,200 and the net cash inflow from financing activities is $250,000. There was a net decrease in the cash and cash equivalents is $3,137,677. The cash and cash equivalents at the end of the year is $2,083,448.
The current market price of the share is A$0.150 with a market capitalization of A$14.29 million.
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