Guess whos name crops up here16 Jun 2018 10:18
The price of Australia's Hawkstone Mining fell more than 22% on Friday after the company announced its withdrawal from the acquisition of USA Lithium.
Hawkstone in March of this year took an option on USA Lithium, which has the lithium projects Big Sandy and Lordsburg, in Arizona and Mexico, respectively.
Hawkstone paid a non-refundable payment of A $ 250,000 for the right of option, paid by issuing 12.5 million common shares, and when exercising the option, the company would also issue fully paid ordinary shares of $ 5 million, which is equivalent to another 250 million shares. In addition, it was expected that Hawkstone would reimburse A $ 100,000 of the costs already incurred by USA Lithium in the project areas.
Hawkstone announced in June that it was in talks with USA Lithium to amend the acquisition agreement, with the intention of reducing the risk of the transaction. However, the company said on Friday that the parties could not reach an agreement, and a mutual decision was made to rescind the acquisition agreements.
The company listed on ASX told shareholders that it would maintain its interest in the Kangwane South anthracite project in South Africa, and would continue to seek a strategy to identify opportunities to create shareholder value.
The price of Hawkstone shares fell from a high of 1.9c per share on Friday, to close at 1.6c per share.