News out this afternoon RAKStill working at trying to buy something?
Rackla still working on Misisi project acquisition
2021-09-09 13:25 ET - News Release
Mr. Simon Ridgway reports
RACKLA PROVIDES UPDATE ON PROPOSED ACQUISITION OF MISISI GOLD PROJECT
Further to its news release of Aug. 9, 2021, Rackla Metals Inc. continues to work on satisfying the conditions precedent to its proposed acquisition of a 73.5-per-cent interest in the Misisi gold project located in the Democratic Republic of the Congo (DRC).
The company has entered into a share purchase agreement (the "Definitive Agreement") to acquire all of the issued and outstanding shares from an arm's length vendor, Golden Mining Ltd. ("Golden Mining"). The Project is owned by Leda Mining Congo SA ("Leda"), of which Casa Mining Limited ("Casa Mining") owns a 73.5% interest, with the remaining interest in Leda held by Minerals and Metals Group, owning 21.5% (participating interest), and the DRC Government owning a 5% free-carried interest. Golden Mining has entered into a share purchase agreement with Golden Square Equity Partners Limited to acquire 99.43% of the outstanding shares of Casa Mining (the "Casa Mining SPA").
Under the terms of the Casa Mining SPA, Golden Mining is acquiring the outstanding shares of Casa Mining for total cash consideration of US$4.8 million in staged cash payments. Under the Definitive Agreement, the Company will acquire Golden Mining through the issuance of 7,250,000 common shares of Rackla, and will assume the obligation to make the required payments under the Casa Mining SPA. Rackla has also agreed to issue 750,000 common shares as a finder's fee in connection with the transaction. If Golden Mining increases its ownership of the Project to 95%, Rackla will issue an additional 3,000,000 common shares to the shareholders of Golden Mining.
The Definitive Agreement provides that closing is subject to Rackla completing a financing raising a minimum of CAD$5,000,000, and other customary conditions. The TSX Venture Exchange has conditionally approved the acquisition transaction. Closing is subject to TSXV final approval, and the Company is in the process of satisfying the requirements to obtain such approval.
As previously announced, it is intended, subject to TSXV approval, that on closing the name of the Company will be changed to GoldenHawk Resources Ltd., and Mr. Darryll Castle will be appointed President, Chief Executive Officer and Director of the Company.
We seek Safe Harbor.
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