High Grade Metals Limited (ASX: HGM) updated the exchange with regards to the proposed sale of the Victory Bore Project to Surefire Resources NL (ASX: SRN). The company on 18th March 2019, agreed to further extend the time for SRN to fulfill the remaining conditions to complete the sale of Victory Bore Project. The new extension date is 18 April 2019. SRN believes that the extended timeline provides enough to meet the conditions and complete the transaction.
It is to be noted that, on 21 August, HGM had agreed to sell its Western Australia located, non-core vanadium project to SRN. The project was christened as Victory Bore Project. Under the sale agreement terms, HGM was supposed to receive A$500,000 cash, a total of 62.5 million shares in SRN, escrowed for six months, also A$650,000 or share consideration within sixty days of SRN announcing PFS for the project that has an Internal Rate of Return of over 20% and lastly A$650,000 cash or share consideration within sixty days of SRN announcing its decision to mine.
The sale was subject to several conditions, and the following were the outstanding conditions as at 18 March 2019. First condition being, SRN raising A$1 million of equity capital or securing debt finance, on terms acceptable to SRN, to fund the purchase of the project. The second condition is, ASX not imposing escrow on any of the shares in SRN to be issued to HGM pursuant to the sale agreement. Finally, the parties involved should satisfy all legislative and regulatory requirements applicable to the transactions contemplated in the sale agreement.
On 21 January 2019, HGM had agreed to provide SRN with an extension of 60 days to complete the transaction as decided in the sale agreement. The company in its release highlighted that on 6th March 2019, SRN had received its shareholder approval for the completion of the transaction. This was a key condition that was pending from SRN when it sought for extension of time on 21 January 2019.
The company recently notified the exchange that it had changed its financial year-end from 30 June to 31 December.
In earlier announcement, HGM provided an update on its Schellgaden Gold project drilling results. It reported that during the period October to November 2018, four drill diamond drill holes were completed at Schellgaden, only one drillhole was completed to its planned depth, SCH18-18 and the remaining three holes did not reach target depth due to technical difficulties or poor weather conditions. No significant assay results were returned.
HGM stock return has declined by 78.13%, 41.67% and 36.36% in the past six months, three months and one month respectively.
The shares of HGM closed the day flat at A$0.007 on ASX (As on 19 March 2019).
High Grade Metals Limited’s (ASX: HGM) reported market capitalization is circa $3.17 million. The total number of outstanding shares is 452.94 million. The avg. trading volume is 899,538. The Stock’s 52-week high is A$0.063. As per the latest ASX declaration, the company’s EPS stood at -0.020 AUD.