(Alliance News) - Rockfire Resources PLC on Friday said it has acquired 100% of Emirates Gold DMCC and 99% of Emperesse Bullion LLC from Paloma Precious DMCC via a share purchase agreement.
The Australia and Greece-focused base metal, gold, and critical mineral exploration company said it will pay an initial USD2 million in cash, funded by existing resources and the proceeds of a subscription.
The final consideration will be USD18 million, it said.
Rockfire noted the acquisitions are part of an "ambitious growth strategy", and are both cash-generating. As a result, the firm said it views the acquisitions as "potentially transformational value enhancing [purchases]".
Emirates is a gold and silver refinery business, while Emperesse operates a gold, silver and platinum trading shop in Dubai's DMCC multi-commodities centre. Precious Paloma is a precious metals trading firm.
To fund the acquisition, Rockfire said it will raise USD3.5 million through the subscription for 700 million shares by two institutional investors.
Shares in Rockfire were suspended on Friday subject to the admission document and shareholder approval for the acquisition, or an announcement that the acquisition is not proceeding.
The firm said it will look to publish the admission document as soon as possible.
Chief Executive David Price said: "The board of Rockfire has identified an exceptional opportunity to acquire two cash-generating businesses, which are entirely in line with the full value-add integration of precious and base metal exploration, development, production, refining and trading.
"The proposed acquisition of Emirates and Emperesse would not only be transformational for our shareholders but would enable Rockfire to continue to grow as a global explorer and refiner of metals, all backed with positive cash flow."
By Harvey Dorset, Alliance News reporter
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