THE directors of Metals Exploration Limited have agreed to buy the interests of their joint venture partner, Acclaim Exploration Limited, in Hinckley Range Pty Ltd and Austral Nickel Pty Ltd for an acquisition price of $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 Exploration and Acclaim as previously announced on March 23 2005. Metals Exploration 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 Exploration 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 Exploration 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.
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