(Alliance News) - Richland Resources Ltd said Monday that the longstop date for the sale of its Capricorn sapphire project in Australia has been extended to the end of December, which will allow the parties to finalise the remaining legal formalities.
Shares in the Bermuda-based gemstone miner were 3.1% lower at 0.16 pence on Monday in London.
In August, Richland shareholders approved the sale of the project to Fura Gems Inc. Under the initial sale agreement, Fura would pay CAD150,000 in cash as an option fee, plus a purchase price of USD185,000 in cash and the issue of 4.9 million Fura shares to Richland.
Fura also was to pay USD90,000 in expenses, issue additional Fura shares worthy AUD150,000, and then 18 months later, pay another AUD371,911 in cash.
However, following the previous deadline extension to December 20, Fura and Richland had signed a sixth deed of amendment, which will amend the composition of the purchase price so that Fura will not will not have to pay in shares.
Now Fura will acquire the Capricorn sapphire project for USD1.3 million in cash.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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