Neale Fong-chaired Chrysalis Resources has announced its intention to enter the tech market by acquiring a Philippines-based company which operates a mobile banking, payments and remittance platform.
Chrysalis has proposed to buy Peppermint Innovation in exchange for 70 million shares which, at its last closing price of 1.5 cents a share, are valued at about $1.05 million.
It will also issue about 94 million performance shares, subject to certain milestones being met by Peppermint.
The company will also be required to complete a $3.5 million capital raising in order to comply with ASX relisting rules.
If the deal is successful, the board of the new company will comprise three Peppermint directors and one existing Chrysalis director.
Chrysalis entered into a deal to sell its West Angelas iron ore project tenements to Fortescue Metals Group in September last year for $300,000 over two years.
The company said the first anniversary payment was due in August.
Shares in Chrysalis were 126.6 per cent higher at 3.4 cents each at 2:30pm.