(Alliance News) - Natural resource-focused company Mila Resources has entered into non-binding Heads of Terms to acquire New Generation Minerals Ltd through the issue of an undisclosed number of shares in the company.
New Generation Minerals is a UK-based private company, whose main asset is the Kathleen Valley gold project in Western Australia. NGM started work on the project in May 2019 and carried out further drilling in September 2020.
As the acquisition constitutes a reverse takeover under Main Market Listing Rules, Mila has requested that its shares be temporarily suspended from trading with immediate effect.
The acquisition is subject to due diligence, completion of the acquisition and relisting of the enlarged group on the London Main Market.
"We are very enthusiastic to be progressing this transaction with NGM. We are particularly looking forward to further drilling of the Kathleen Valley gold project and building value through exploration in a world class gold province," said Executive Director Mark Stephenson.
"We are moving rapidly to complete due diligence and documentation with regard to relisting the Company. We are excited to have entered into this proposed transaction with NGM at this stage in its development of the Kathleen Valley gold project," Stephenson added.
Shares in Mila Resources are currently suspended in London, last traded at 2.25 pence.
By Zoe Wickens; zoewickens@alliancenews.com
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Mila Resources (MILA)