Metal Bank Limited (ASX:MBK), a key player in the mining sector, has signed a binding Sale and Purchase Agreement (SPA) with Hastings Technology Metals Ltd (ASX:HAS). This agreement follows a comprehensive due diligence process conducted by both parties, aimed at acquiring the gold assets held by HAS. The acquisition is contingent upon several conditions, including shareholder approvals.
The proposed acquisition represents a strategic expansion for MBK, emphasizing its commitment to strengthening its asset base within the mining industry.
The collaboration aims to leverage the acquired gold assets and foster growth for both companies.
Details of the acquisition
Under the terms of the acquisition, MBK will issue a total of Consideration Shares valued at $2,300,000 to HAS upon completion of the deal. This valuation is based on a share price of $0.014373, reflecting the ten-day volume-weighted average price (VWAP) at the time the term sheet was signed. The total consideration includes $2,000,000 allocated for the gold assets and an additional $300,000 designated for the cash reserves held by Great Western Gold Pty Ltd (GWG) at the time of completion.
Gold assets to be acquired
This acquisition will enable MBK to acquire several important gold assets from HAS, including:
- Great Western Gold Pty Ltd (GWG), which holds a 75% interest in the Whiteheads Gold Project joint venture tenements, along with other tenements that GWG fully owns. This project covers approximately 380 square kilometers, located around 80 kilometers northeast of Kalgoorlie, an area recognized for its rich mining history.
- Ark Gold Pty Ltd (Ark), the owner of the Ark gold project, which consists of two exploration licenses situated approximately 40 kilometers southeast of HAS’s Yangibana Project, located about 250 kilometers northeast of Carnarvon in Western Australia.
- The Darcy’s gold project, which includes three exploration licenses covering about 100 square kilometers, is adjacent to HAS’s Brockman Niobium and Heavy Rare Earths Project in the East Kimberley region of Western Australia.
It is crucial to note that the proposed acquisition is subject to specific conditions. These include securing shareholder approval under Listing Rule 7.1 for the issuance of the Consideration Shares by MBK, as well as obtaining HAS shareholder approval for distributing these shares in-specie to its shareholders. Fortunately, MBK has confirmed with the ASX that Listing Rules 11.1.2 and 11.1.3 do not apply to this acquisition, thus meeting an essential condition.
Current developments and future outlook
As the acquisition process progresses, drilling operations have commenced at the Seven Leaders prospect within the Whiteheads Project. This initiative focuses primarily on the Seven Leaders Project and includes geotechnical drilling, which is vital for designing the future mining pit. Additionally, the Livingstone Scoping Study is underway, which is a critical component in assessing the viability and potential of the involved projects.
The collaboration between MBK and HAS is anticipated to drive innovation and growth in the mining sector, as both companies work towards maximizing the potential of these gold assets. This strategic acquisition enhances Metal Bank’s resource portfolio and positions the company favorably for future opportunities in a competitive mining landscape.
For more detailed information, interested parties can access the full ASX Release here.
This article includes content from Metal Bank Limited and is intended for informational purposes only. Readers are encouraged to conduct their own due diligence before making any decisions based on the information provided. Please refer to our full disclaimer here.
