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Tempus Resources Ltd (ASX: TMR), a mineral exploration company, on 9 May 2019 announced that it had entered into a binding agreement to acquire two Ecuadorian companies, Condor Gold S.A. and MiningSources S.A. Together, both the companies own three mineral exploration concessions (the Zamora Projects) adjacent to and within the same district as the world-class Fruta del Norte gold project. The project is currently under development by Lundin Gold (TSX:LUG) and is owned 27% by Newcrest Mining (ASX:NCM).
Ecuador is a rapidly evolving exploration hotspot, with well-known companies such as BHP Group Limited (ASX: BHP), Rio Tinto (ASX: RIO), Newcrest Mining Limited (ASX: NCM), Fortescue Metals Group Limited (ASX: FMG) along with Solgold. Rio Zarza, the flagship acquisition project of the company is situated next to Fruta del Norteâs western boundary and has strikingly similar geological features.
Other than this, the Valle del Tigre provides 2,195 hectares of highly prospective greenfield exploration area between Fruta del Norte and Lundin-Newcrest joint-venture concessions.
As a part of the acquisition, the board and the management of the company will be strengthened to support an aggressive exploration program on the Zamora Projects. By strengthening the board, the company would be pursuing further opportunities in Ecuador and the broader Latin American region.
To meet the aforesaid objectives, the board has made a slew of management changes, Mr Rodrigo Izurieta is to be appointed as the Chief Operating Officer, Latin America. Mr. Izurieta is an economist and is also a business manager with more than 20 years of experience. Earlier, he was the President and Board Member for the Chamber of Mines of Ecuador. Further, Mr. Brendan Borg who is currently the Non-Executive Director of TMR is appointed as an Executive Director. Mr. Alex Molyneux will remain to be the Non-Executive Chairman of the Company and Ms. Melanie Ross, Non-Executive Director and Company Secretary.
In order to acquire the project fully, the company need to pay a cash consideration of US$100,000. Also, for a period of 12 months, 3,446,205 Tempus shares need to be escrowed. An Ecuadorian trust is the vendor of the Zamora Projects. Mr Rodrigo Izurieta who is appointed as the Chief operating officer is the main beneficiary of this trust.
The proposed acquisition depends on shareholdersâ approval at the general meeting.
In March 2019, the surface sampling was undertaken near the Crowsons Copper Prospect. From this region, a total of fifteen rock chip and six soil samples was collected and submitted to Intertek laboratories for analysis in Perth.
The company used A$0.277 million in its operating activities. The net cash and cash equivalent by the end of March 2019 quarter were A$4.335 million. The estimated cash outflow in the June quarter is estimated to be around A$0.535 million.
The shares of Tempus Resources Ltd were under the trading halt on 7 May 2019 pending the announcement on the acquisition. Post the announcement on acquisition of two Ecuadorian companies, the shares resumed trading on ASX. The shares of Tempus Resources Ltd closed the dayâs trade flat at A$0.190, as compared to its previous closing price. Tempus Resources Ltd holds a market capitalization of A$6.93 million and approximately 36.5 million are outstanding shares.
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