- Kopore Metals has entered into a binding share sale agreement with Endeavour Financial AG to fully acquire Endeavour's uranium project.
- KMT agreed to purchase 100% of the issued capital in EF Niger Exploration SARL by paying US$100,000 to Endeavour.
- The project contains three granted exploration permits and one exploration licence application.
Kopore Metals Limited (ASX: KMT) marks its first step towards diversification into clean energy-focused projects. In a significant announcement on Wednesday, the copper-silver player stated that it had entered into a binding share sale agreement with Endeavour Financial AG to fully acquire Endeavour's uranium project. The uranium project in the Agadez region of Niger is held by Endeavour's wholly owned subsidiary, EF Niger Exploration SARL.
Source: © Krisdog | Megapixl.com
Triggered by the announcement, shares of the company tumbled as much as 8.8% to trade at AU$0.031 per share during the intraday trading session on Thursday.
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The Botswana and Western Australia-focused miner agreed to purchase 100% of the issued capital in EF Niger Exploration SARL for a cash payment of US$100,000 to Endeavour. Additionally, the company also plans to issue 120,000,000 company shares to Endeavour at a deemed issue price of AU$0.02.
Under the agreement terms, KMT has agreed to spend a minimum of US$2,000,000 on permits in the initial 24 months, including US$1,500,000 to be spent towards the drilling program. The project includes three granted exploration permits and one exploration licence application in the Tim Mersoi Basin, one of the leading uranium-producing areas in the world.
Apart from this, the company also agreed to issue Endeavour (or its Nominees) 80,000,000 performance shares with an expiry date of 5 years and 50,000,000 performance options with an expiry date of 3 years and an exercise price of AU$0.03. The exercising of the performance shares and options are subject to the definition of at least 16Mlb of U3O8 mineral resource with a minimum grade of 200ppm U3O8 at any of these permits.
Conditions for the transaction Source: Copyright © 2021 Kalkine Media
Additionally, Kopore announced that it had received firm commitments from the investors to raise AU$1.2 million via a Placement of 40 million placement shares at an issue price of A$0.03 per share.
The placement issue price represents an 11.8% discount on the last traded price on 6 December and a 14.5% discount on the 15-day VWAP price.
Ironside Capital Pty Ltd and Merchant Capital Partners Pty Ltd have been engaged by the Company to act as Joint Lead Managers to the Placement.