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(Alliance News) - Future Metals NL on Friday said it exercised its option to buy Osprey Minerals Pty Ltd, as previously detailed in a deal to acquire an exploration tenure last month.
The West Perth-based exploration company focused on the Panton platinum group metals project in Western Australia said the option follows agreeing to acquire a 100 square kilometre prospective exploration tenure adjacent to Panton from Osprey Minerals for USD625,000 worth of Future Metals shares, as announced last month.
Osprey shareholders will now receive 18.4 million new Future Metals shares within the next five business days, subject to a six-month escrow.
Future Metals will pay a AUD325,000 deferred consideration in new shares or cash at its election six months from the date of exercise, followed by a further AUD325,000 in new shares payable when Future Metals drills 2,000 metres or more on the Osprey tenements.
If Future Metals opts to pay in new shares, these will be priced at the five-day volume weighted average price of its shares.
Shares in Future Metals were down 4.8% to 2.00 pence each in London on Friday late morning.
"We are pleased to have closed out this transaction with Osprey and welcome our new Future Metals' shareholders. The tenements acquired as part of the transaction are incredibly complementary to our activities at Panton and in the East Kimberley," said Future Metals Managing Director Jardee Kininmonth.
"The Eileen Bore prospect is an exciting, advanced exploration target amongst a portfolio of compelling targets throughout the acquired tenement package, and we look forward to updating the market shortly on our forward plans for the projects."
The new Future Metals shares already entitled to Osprey shareholders are expected to be admitted to trading on AIM in London at the opening bell on Wednesday next week, taking the total number of Future Metals shares in issue to 440.3 million.
By Greg Rosenvinge, Alliance News senior reporter
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