04/03/2011 - 08:49

Focus to own Treasure Island outright

04/03/2011 - 08:49

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Focus Minerals says it will purchase the remaining stake it does not already own of the Treasure Island gold project in the eastern Goldfields in a scrip and cash offer worth around $2.4 million, on today's share price.

Focus Minerals says it will purchase the remaining 25 per cent it does not already own of the Treasure Island gold project in the eastern Goldfields in a scrip and cash offer worth around $2.4 million on today's share price.

Focus currently holds a 75 per cent interest in Treasure Island, near Kambalda.

Under terms of the transaction, Focus will pay the project's vendors, Semro, five million Focus shares and $2 million cash.

Focus shares jumped 6 per cent this morning, and at 8:40AM (WST) were trading at $0.08.

Semro has also granted Focus the option to acquire an adjoining 110 square kilometre tenement, in return for one million shares and 15 million options.

The options would be issued in three tranches, with the first exercisable at 10 cents within two years, the second at 15 cents within three years and the third at 20 cents within four years.

Focus said drilling at Treasure Island was scheduled to start this weekend.

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