LONDON (Alliance News) - Aurasian Minerals PLC on Wednesday said it has now received acceptances of its acquisition offer from all the shareholders of Moroccan Minerals Ltd, as it announced it has reached an option agreement with metal trader and mechant network Rockstone Group LLC to earn interest in two Serbian project licences.
The company, which is focused on exploration in South-East Asia, said for each Moroccan Minerals share, shareholders will receive 4.22 shares in Aurasian Minerals. There are currently 18.0 million Moroccan Minerals shares and, as such, Aurasian has applied for 75.9 million shares to be issued, the company said.
As such, Moroccan Minerals shareholders will own 14.17% of Aurasian once the shares are admitted to dealing, expected to occur on May 31.
Under the terms of the agreement, Aurasian will also issue warrants to certain Moroccan Minerals shareholders in exchange for their Moroccan Minerals shares. Such warrants will grant these shareholders the right to subscribe for in total 1.9 million Aurasian shares, the company added.
Having closed the offer, Aurasian will focus its efforts on the advancement of the Chadine Project in Serbia, it said, as well as continuing to look for other opportunities to expand its asset portfolio, particularly in Serbia where the management team has "extensive experience and contacts".
Elsewhere, Aurasian said it has executed an option agreement with Rockstone Group, meaning it can earn up to 80% interest in the Gokcinica project licenses in Southern Serbia, also known as the Gockinica Permits.
The Gockinica Permits consist of two adjoining permits with a combined area of 110 kilometres squared located in southern Serbia, within the 500 kilometre square Rashka ore field.
"The board of Aurasian believes that good potential for porphyry and epithermal style mineralisation as well as deeper-level replacement base metal and gold deposits exists throughout the license," Aurasian said.
Recent prospecting work at the site has located a number of arsenopyrite and pyrite rich veins which outcrop over a 200 metre strike length, can be up to 20 metres wide, and with individual assays up to 67 grams per tonne of gold, Aurasian said.
"With large areas of alteration and many undrilled gossan zones rich in precious metals we feel confident in moving the project forward to the drill stage and with the aim of discovering a significant gold deposit. Much of the previous work has been targeted at base metal veins and porphyry copper deposits and may therefore have overlooked the potential for significant gold mineralisation," Chief Executive Peter Mullens said.
Shares in Aurasian were up 11.7% at 0.670 pence on Wednesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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