ASX-listed MOD Resources Limited has completed its transaction with Metal Tiger - effective 15 November 2018.
MOD has acquired:
- Metal Tiger's (MTR) 30% stake in the T3 Copper Project - MOD now owns 100% of the T3 Copper Project; and
- Rights to purchase, at MOD’s election, MTR’s 30% interest in all other JV Exploration Assets that reach scoping study level, or after three years from completion of this transaction, (November 2021).
“This is a landmark transaction for our shareholders. With full ownership of the T3 copper mine and processing plant, we have laid the foundations to grow into a mid-tier copper producer, centering its operations around the T3 hub in the central Kalahari Copper Belt,” highlights MOD’s MD, Julian Hanna.
“Additionally, as part of the company's growth strategy, it has secured a very flexible arrangement to acquire the remaining JV Exploration Assets, in the MOD/MTR portfolio, if they reach scoping study level within three years, and a right for us to acquire all MTR’s interests in the JV Exploration Assets by November 2021.
"This allows shareholders to gain maximum exposure to the upside of all future
discoveries at the company’s discretion.”
As part of the conditions precedent, 18 prospecting licences excluding the T3 Project (the JV Exploration Assets) are in the process of being transferred into a new Botswana registered joint venture company, Tshukudu Exploration, which is owned 70% by MOD and 30% by MTR.
Eight key licences have already been transferred and the remaining ten are well
advanced in this process.
The companies have waived the transfer of these licences as condition precedent
to completion of the transaction and remain committed to securing their transfer as soon as reasonably practicable.