Future Metals NL (ASX:FME, AIM:FME) has announced the successful exercise of its option to acquire 100% ownership of Osprey Minerals Pty Ltd, in a move that complements its existing activities at Panton and in the East Kimberly.
Under the terms of the agreement, Osprey shareholders are set to receive an upfront consideration of 18,382,352 new shares in Future Metals within the next five business days. These shares will be held in escrow for a period of six months.
Furthermore, the company is committed to a deferred payment of $325,000 to Osprey shareholders, to be settled in either Future Metals shares or cash, as per the company's discretion, six months post the acquisition date.
Advanced exploration target
Future Metals managing director Jardee Kininmonth said: “We are pleased to have closed out this transaction with Osprey and welcome our new Future Metals’ shareholders.
"The tenements acquired as part of the transaction are incredibly complementary to our activities at Panton and in the East Kimberley.
"The Eileen Bore prospect is an exciting, advanced exploration target amongst a portfolio of compelling targets throughout the acquired tenement package, and we look forward to updating the market shortly on our forward plans for the projects.”
What's more
Further commitments include an additional $325,000, payable in new ordinary shares or cash, contingent upon the company completing a minimum of 2,000 meters of drilling on the Osprey tenements.
If the deferred consideration is to be paid in new ordinary shares, the pricing will be based on the 5-day Volume Weighted Average Price (VWAP) at the time the milestone is achieved.