Montezuma Mining Company (ASX: MZM) has entered into underwriting agreements with Hong Kong based investment group Dragon Gas Limited to provide additional cash reserves to further advance activity at Montezuma’s projects.
The agreements are for two classes of options with respective strike prices of $0.20 and $0.35 and an expiry date of 31 August 2011. Dragon will subscribe for, or arrange for the subscription for all $0.20 and $0.35 options which remain unexercised at the expiry date.
Dragon will not receive a fee in relation to the agreements unless the number of $0.20 options available for underwriting falls below 2.5 million, in which case Dragon will be entitled to subscribe for shares in Montezuma at $0.20 per share to a maximum of 2.5 million shares.
No fee provisions apply to the $0.35 options, of which about 2.5 million remain unexercised as at the date of this release.
Montezuma continues to move the wholly owned Butcherbird Manganese/Copper Project forward - and has recently identified some new priority targets from the first phase of a ground IP survey.
The compamy aims to progress Butcherbird to the next level through support from international investors.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19047/montezuma-mining-company-signs-option-underwriting-agreement-with-dragon-gas-19047.html
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