Eclipse23 Sep 2024 11:12
empire metals in august 2020 (au price $1840) entered into an option agreement to acquire a 75% interest in the eclipse gold project from philips exploration pty ltd. the company paid aud$100,000 (approximately £55,000) in cash, aud$150,000 (£82,144) settled via the issue of 4,693,954 new ordinary shares (1.75p) and the issue of 4,693,954 warrants exercisable at 3p for two years (now passed). in addition, a finder's fee was paid to an unrelated party of aud$150,000 (£82,144) settled via the issue of 4,693,954 new ordinary shares (1.75p) and the issue of 4,693,954 warrants to subscribe for ordinary shares, exercisable at 3 pence for two years (now passed & ****ed me off at the time). empire also agreed to spend aud$300,000 within a 6-month period on exploration, administration and maintenance.
empire then exercised the option up to the 6-month option expiration date with payment of aud$1,000,000 in cash and aud$500,000 settled via the issue of new ordinary shares and the issue of one for one warrants exercisable at a 20% premium to the option exercise consideration share issue price valid for two years from completion (now passed)
there has been a 27% increase in au prices since the acquisition & the company are now in negotiations to sell the project which they expect to be completed by march 2025 or sooner.
i haven’t done all the calculations in the level of detail required but one would assume we would recoup a significant amount of the costs & more based on inflation over the last 4 years & increase in gold prices per ounce.
any cash injection here coupled with any additional cash / funding / grants would really ease up any concerns of funding which is always a concern in non-income generating companies.
the next 6 months are going to be very lively indeed. most, if not all of it is likely to be positive & potentially company making. 2024 was going to be the year of work, 2025 will be the year of shareholder reward.
dyor
ml
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