Trek Metals has confirmed that it has now completed the acquisition of the Kroussou project from TKM’s JV partner, Battery Minerals.
Trek Metals has been progressing its exploration at the Kroussou project over the past 12 months and is ready to commence its maiden exploration drilling programme during Q2 2018.
“My recent visit to,our now 100% owned Kroussou project, has re‐doubled my excitement to begin our maiden exploration drilling programme at this very special area in June,” comments Trek Metals MD, Bradley Drabsch.
“I am amazed at the fact that we can walk around in 2018 and literally kick ore‐grade rocks on the ground at Kroussou.
In a period where most of the world is looking to deep targets, very deep targets, we are picking ore up off the ground,” he continues.
Key terms of the acquisition
- TKM’s nominee acquired 100% of the issued capital of BAT’s Mauritian subsidiary, Select Exploration, which holds a 100% interest in the Kroussou project
- The initial consideration for the acquisition of the Kroussou project is: a cash payment of US$200,000 to BAT; the issue of 10,566,636 fully paid ordinary shares at a deemed issue price of A$0.025 per share and 5,283,318 free attaching options exercisable at A$0.10 and expiring 27 April 2021 and vesting 12 months from issue; and Trek Metals has granted BAT a 2.5% net smelter return royalty on gross sales revenue (NSR Royalty) with Trek Metals having an option to buy back 1% of the NSR Royalty for US$1,500,000
- The Consideration Shares are subject to a 12‐month voluntary escrow period
- Upon Trek defining a JORC‐compliant Indicated Mineral Resource Estimate of more than 250,000 tonnes of combined Zn/Pb metal in relation to the Kroussou Project and subject to shareholder approval, Trek Metals will issue BAT US$2,500,000 of TKM shares based on a 5‐day VWAP prior to the date of issue and one free attaching option for every two Deferred Consideration Shares issued
- An existing 0.75% net smelter return royalty payable in relation to the Kroussou project to a third party which can be bought back for US$250,000 (Existing Royalty), will be novated from BAT to Trek as part of the acquisition
- If Trek Metals abandons the Kroussou project, BAT has the option to acquire the project for fair value to be determined by an appointed expert
- If Trek sells the Kroussou project, the third‐party purchaser must undertake to provide BAT with an equivalent Deferred Consideration or TKM may agree to pay BAT the Deferred Consideration in cash