Colt Resources (CVE:GTP) announced Wednesday that it has purchased the surface rights to a 140-hectare area at its Tabuaco tungsten project, located in northern Portugal, for a total transaction cost of EUR10 million (US$14.4 million).
The company completed the transaction through the purchase of 100% of Q.S.P.A, a private Portuguese company, consisting of surface rights, an operational business and real estate, in an arm's length transaction.
However, the surface rights are the main asset, and are key in Colt's development of the tungsten property, it said.
"The acquisition of these surface rights not only provides Colt with unhindered access to the ground for exploration but more importantly, it is a crucial step for the next stages of the development of our Tabuaco tungsten project which we will be fast-tracking in the months ahead," said president and CEO, Nikolas Perrault.
Colt will pay a combination of cash and shares for the assets. Five million euros (US$7.2 million) will be paid in cash, EUR3.0 million (US$4.3 million) of which was already paid at closing. The remaining EUR2.0 million (US$2.9 million) will be paid in two equal installments on the first and second year anniversary of the acquisition, it said.
The junior explorer also issued five million restricted common shares to Q.S.P.A. and another five million zero-dividend, convertible preferred shares to the seller, which may be exercised for EUR0.50 (US$0.72) each. In total, Colt issued 3.39 million common shares.
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