Focus Minerals’ Shares Enter Trading Halt Pending The Release Of Project Update

On 8 March 2019, Focus Minerals Limited (ASX: FML) requested ASX to place its securities on the immediate trading halt pending market announcement in relation to its project update for Coolgardie Gold Project and Laverton Gold Project.

The Australian Securities Exchange subsequently released a market announcement informing that FML shares have been put on a trading halt on the basis of the company’s request. It has been reported that this trading halt will remain in place until the earlier of 12 March 2019 or the release of the pending market announcement as stated above.

Most recently, Focus Minerals inked an exclusivity deed with an ASX-listed miner Intermin Resources Limited for the prospective sale of its Coolgardie Gold Project including the sale of 1.2Mtpa Three Mile Hill processing plant. The proposal underscores the sale consideration of A$40 million comprising a combination of A$31.0 million cash and A$9.0 million worth of newly issued Intermin shares payable over 3.5 years.

The exclusivity period has been determined to 5-months which is expected to allow both Focus and Intermin to finalise formal documents for the proposed transaction and secure all necessary approvals to complete it.

Focus’ Chief Executive Officer, Mr Zhaoya Wang stated that “The signing of the Exclusivity Deed with Intermin puts forward a clear pathway for both the parties to execute and negotiate the formal documents for Coolgardie’s sale over the coming months as well as allowing Focus to continue progressing its separate Laverton gold project.”

Azure Capital and MinterEllison are acting as Focus’ financial advisor and legal advisor respectively in relation to the Proposed Transaction.

 The key terms of exclusivity deed include the payment of A$0.3 million exclusivity deposit by Intermin to Focus within seven business days of execution of the Exclusivity Deed. Although there is no assurance that the Proposed Transaction will proceed, the parties have agreed on the key commercial terms for the Proposed Transaction and have completed their respective due diligence investigations.

Mr Wang added that Focus eyes a great exposure to Coolgardie ahead of the proposed merger of Intermin and MacPhersons Resources proceeding and is excited about the receipt of Intermin shares as part consideration for the Proposed Transaction.

However, the Intermin Shares issued to Focus under the Proposed Transaction will be subject to a voluntary escrow period ending 12 months after the date of completion of the sale and purchase of the Assets. This proposed transaction further remains subject to the receipt of necessary approvals, negotiations and entry into formal documentation.

Focus is primarily engaged in the gold discovery, development and production through a highly strategic portfolio of assets across Coolgardie belt and Laverton. It also owns and operates Nepean Nickel Project, located at the southernmost end of its Coolgardie tenement package.

FML last traded at $0.255 with a market capitalisation of $46.6 million. Over the past 12 months, the stock has witnessed a negative performance change of 20.31% despite the massive surge of 50% in the past three months.


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