Malagasy Minerals finalises sale of 25% stake in Madagascar
Malagasy Minerals finalises sale of 25% stake in Madagascar graphite project
Thursday, March 27, 2014 by Proactive Investors
Malagasy Minerals finalises sale of 25% stake in Madagascar graphite project
(ASX: MGY) has finalised the sale of its 25% interest in the Molo Graphite Project in Madagascar to joint venture partner for an initial payment of C$400,000.
The sale will allow the company to focus on its 100% owned tenements at the Maniry Project.
On execution of the Sale and Purchase Agreement Energizer will:
- Pay Malagasy the sum of C$400,000 cash;
- Issue 2,500,000 EGZ shares (held in escrow for 12 months); and
- Issue 3,500,000 EGZ warrants (based on a 5 day VWAP prior to date of signing).
On completion of a Bankable Feasibility Study (“BFS”) Energizer will:
- Pay Malagasy the sum of C$700,000 cash; and
- Issue 1,000,000 EGZ shares.
On the commencement of commercial production Energizer will:
- Pay Malagasy the sum of C$1,000,000 cash; and
- Commence payment of a 1.5% Net Smelter Return (“NSR”) on all production.
In a parallel but separate transaction still being finalised, Energizer has agreed to transfer to Malagasy a 75% interest in the non-industrial mineral rights of the adjacent Green Giant Project.
The formation of the joint venture was conditional on the companies completing the Molo Project SPA; and Energizer’s 25% interest will be free-carried to a decision to mine.
https://www.proactiveinvestors.com.au/companies/news/53951/malagasy-minerals-finalises-sale-of-25-stake-in-madagascar-graphite-project-53951.html