Crusader sells Juruena to Meteoric for up to $3.5m

Meteoric Resources has struck a deal to pay up to $3 million in cash and scrip for Crusader’s Resources Juruena and Novo Astro gold projects, and Crusader has increased the underwriting of its $4.2 million rights issue by $1 million.

Under the terms of the sale, for the upfront payment Crusader will receive $1 million in cash and $500,000 of Meteoric shares, comprised of 50 million shares at an issue price of 1 cent each.

The other $1.5 million in Meteoric shares at a five-day volume-weigthed average price will be received if either Juruena or Novo Astro contain at least 400,000 ounces of gold and Crusader is granted a mining licence at the projects.

Juruena and Novo Astro are both prospective projects located at the Amazon Basin in central Brazil.

Crusader also announced it had an executed an agreement with Pinnacle Corporate Finance to partially underwrite its $4.2 million rights issue offer for $1 million.

Underwriting agreements have now been entered into for $3.5 million for the 1-cent-per-share rights issue.

Subscribers in the rights issue will also be issued one free-attaching option for every three new shares subscribed for, exercisable at 2 cents each and expiring three years from the date of issue.

Crusader chairman Stephen Copulos said the sale would allow the company to focus on its bringing its Borborema gold project in north-eastern Brazil into production.

“The new board and management in Brazil have increased their focus on the outstanding technical aspects of Borborema with a view to completing the bankable feasibility study as quickly as possible,” he said.