Nedlands-based Hawk Resources Ltd will acquire 80 per cent of the Callie Soak tungsten prospect, currently owned by Richmond Resources Pty Ltd, for $60,000 in cash and scrip, the company has announced.
Hawk will acquire the remaining 20 per cent following completion of a bankable feasibility study over the project, located around 40 km west-northwest of Cue, Western Australia.
The full text of a company announcement is pasted below
Since listing on 15th August 2007, the Board has been actively pursuing growth opportunities for the Hawk Resources Limited's (ASX: HFC) tenement portfolio.
The Board is pleased to advise that Hawk Resources Limited (Hawk) has signed a Heads of Agreement with Richmond Resources Pty Ltd (Tenement Holder) which owns the Callie Soak Tungsten Prospect (comprising ELA 20/0669) located approximately 40 kilometres west-northwest of Cue, Western Australia.
Under the terms of the agreement, Hawk will acquire, subject to completion of due diligence, an 80% interest in the tenement on the following terms.
(a) A cash payment of $20,000 and
(b) The allotment of Hawk shares to the value of $40,000 to be issued upon all applications in respect of the tenement application being granted. The issue price of the Hawk shares will be determined by calculating the 10 day Volume Weighted Average Price of Hawk shares immediately prior to the date on which the tenement application is granted.
In addition, Hawk agrees that the Tenement Holder's 20% remaining interest in the tenement following completion will be free carried through to completion of a Bankable Feasibility Study carried out by Hawk in respect of the tenement.
Further information will be released to the market as it becomes available.
