Aragon cans Hot Chili takeover

East Perth-based Aragon Resources has called off its takeover of private Australian company Hot Chili after it was unable to gain surety of pending agreements on key tenements.

The announcement is below:

Aragon Resources Ltd announced on the 15th October 2009 that it intended to make an off-market takeover for all the shares in unlisted explorer Hot Chili Limited ("Hot Chili"). The offer was subject to completion of technical, legal and financial due diligence.

Although Aragon was satisfied with the technical merits of the projects and their potential, it was unable to satisfy itself as to the surety of pending agreements on key tenements within the overall package.

Aragon and Hot Chili have been unable to agree to revised terms and/or deferrals to reflect the uncertainty of finalization of these titles. Hence, the parties have mutually agreed not to proceed with the transaction.

Aragon continues to work on its wholly owned gold, nickel and phosphate projects in Australia and is working with Vital Metals as its major shareholder to advance the large and exciting Watershed Tungsten project in Far North Queensland.

Aragon is debt free and well funded and continues to evaluate project acquisition opportunities that provide growth and opportunity for its shareholders.