(Alliance News) - Richland Resources Ltd on Monday said that it has extended the deadline for Fura Gems Inc to purchase the Capricorn sapphire project located in Australia.
In August, Richland shareholders approved the sale of the project to Fura. Under the sale agreement, Fura will pay an option fee of CAD25,000, about GBP14,335, to Richland, and then CAD125,000 in cash on closing the deal.
The agreement also allows Richland to draw a further CAD125,000 under an existing loan agreement with another party, with Fura paying the lender's interest costs up to CAD3,000.
Richland has extended the longstop date in respect of the sale agreement by one week to Saturday to finalise the remaining legal formalities in relation to the disposal.
The stock was down 0.2% at 0.15 pence in London on Monday.
By Tapan Panchal; tapanpanchal@alliancenews.com
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