Metals Exploration Ltd has agreed to buy joint venture partner Acclaim Exploration Ltd's interests in Hinckley Range Pty Ltd and Austral Nickel Pty Ltd for $5 million in cash and 4.5 million fully paid ordinary Metals shares.
Below is the full announcement:
The Directors of Metals Exploration Limited advise that they have reached agreement to buy their joint venture partner, Acclaim Exploration Ltd out of their entire interests in Hinckley Range Pty Ltd and Austral Nickel Pty Ltd. The acquisition price is $5 million in cash and 4.5 million fully paid ordinary shares in Metals Exploration Limited.
Hinckley Range Pty Ltd is the holding company of the Wingellina Project, the subject of a farm-in JV between Metals Ex and Acclaim as previously announced on March 23, 2005. Metals Ex commenced a 20,000 metre RC drilling program at Wingellina in August 2005 and is continuing with that program.
Austral Nickel Pty Ltd is the holding company of the Claude Hills Project, also the subject of a farm-in agreement between Metals Ex and Acclaim.
Metals Exploration Ltd chairman, Peter Cook said "the consolidation of ownership of the Wingellina Project through Hinckley Range Pty Ltd is a major milestone of that will make the continued exploration and any future development simpler."
The offer is subject to shareholder approval by Acclaim. Metals Ex has agreed to advance the cash payment of $5 million to Acclaim in return for first ranking fixed and floating charges over the shares in and assets of Hinckley Range and Austral Nickel. Should the transaction not be completed within 90 days after the date of advance, the funds will be immediately repayable with interest at 10 per cent payable from the date of advance.
Until such time that this transaction is completed, the current farm-in agreements between Metex Nickel Pty Ltd and the two holding companies will subsist.
