LONDON (Alliance News) - Nyota Minerals Ltd on Wednesday said it has paid off the balance and issued the remaining shares as part of its acquisition of a stake in KEC Exploration after KEC was awarded a second exploration permit in Italy.
Nyota shares were up 24% to 0.105 pence per share on Wednesday morning.
In February, Nyota entered into a binding agreement to acquire a 70% stake in KEC Exploration Pty for a total of AUD100,000 in cash and by issuing 75.0 million Nyota shares to KEC. The total cash consideration comprised of a AUD25,000 upfront fee and a further AUD75,000 in license related costs.
In February, Nyota had paid half of the license related cost, leaving a balance of AUD37,500 left to pay to KEC, and issued 37.5 million Nyota shares to KEC. On Wednesday, Nyota said it has now paid the balance off and issued the remaining shares after KEC was awarded a second exploration permit at the Ivrea project, which is located in the Piemonte region of Italy.
Now that the 75.0 million Nyota shares have been issued, KEC holds a 7.8% stake in Nyota.
There is no further consideration payable if and when further licences that have been applied for by KEC are issued, said Nyota. KEC has applied for a further two exploration licenses, Gula and Fei, which are awaiting approval.
As part of the acquisition, Nyota agreed to fund 100% of KEC's expenses on the Ivrea project and agreed an initial and non-binding exploration work programme and budget for the next 12 months with a target spend of at least AUD150,000.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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