Parabellum Resources Ltd (ASX:PBL)’s partner in the Khotgor Rare Earths Project in Mongolia, Temarise Limited, continues to progress discussions aimed at exercising an exclusive option to acquire 80% of the project.
Ongoing discussions with project stakeholders centred on financing the US$15 million payment required to exercise the option have resulted in Temarise further extending the option payment date.
With global interest in critical minerals continuing to grow, Parabellum has advised that it intends to maintain its 30% pro-rate interest in Temarise by way of a further capital injection and contribution to that company.
Progress in 2023
In January 2023, Parabellum completed a subscription for 30% of the share capital of Temarise for a total subscription price of A$3.9 million and since then has maintained this status but does not have any representatives on its board.
The following month Temarise exercised an exclusive option to acquire 80% of the project. The exercise price of the option is US$15 million.
This payment was originally required to be made on or before May 22, 2023, which was subsequently extended to July 31, 2023, to allow discussions between MBSEA and other stakeholders in the project to be concluded and enable Temarise to continue financing discussions with third parties in respect to the exercise price.
Financing discussions ongoing
Temarise has recently informed PBL that it has been progressing financing initiatives in respect to the exercise price and, in order to continue to facilitate financing discussions, MBSEA and Temarise have agreed to further extend the option payment date.
Parabellum will release further details on its proposed capital-raising initiative to fund a further capital contribution to Temarise at a later date.
As well as Temarise and the Khotgor Project, PBL holds a 100% interest in four projects in a highly prospective region in Central West New South Wales, Australia.
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