Published:
Moly Mines Banks A$5 Million and Becomes Major Shareholder in Cortona
Moly Mines Limited, (TSX: MOL)(ASX: MOL) is pleased to announce it has settled the sale of its NSW Gold Assets and as a result becomes a 19% shareholder in ASX listed gold explorer Cortona Resources Limited ("Cortona").
On settlement, Moly Mines received:
- A$5 million cash; and
- 12 million fully paid ordinary shares in Cortona.
Moly Mines entered a binding Term Sheet with Cortona in February of this year. The deemed consideration was calculated at A$0.20 per Cortona share. Cortona's closing price today on the Australian Stock Exchange was A$0.38 per share, a 190% increase since completing the Term Sheet.
Moly Mines Managing Director Dr Derek Fisher said "the sale of the Gold Assets has unlocked substantial value for Moly Mines shareholders. Sitting within Moly Mines Limited, these Gold Assets had been significantly overshadowed by the Spinifex Ridge Molybdenum / Copper Project."
On a fully diluted basis Moly Mines owns 27.8% of Cortona, although the Company would be subject to the Corporations Act (2001) takeover provisions in reaching these levels.
Dr Fisher has been appointed to the Board of Cortona as a non-executive director.
In addition to the cash and shares received at settlement, Moly Mines also received:
- 8 million options in Cortona exercisable at $0.35, expiring 2 years from the date of issue; and
- a further 8 million options, exercisable at $0.50 (Royalty Options).
The Royalty Options will not vest until either the successful delineation of a total of 1 million ounces of measured and / or indicated resource (in accordance with the requirements of the JORC code) from the New South Wales Gold Assets OR a decision to mine is made on any of the New South Wales Gold Assets.
In addition to the Royalty Options, on achievement of either of these royalty milestones, Moly Mines will receive a further A$4 million cash payment.
Moly Mines looks forward to participating as a major shareholder in the exciting exploration and development strategies of Cortona.
Copyright © 2009, MarketWire
Copyright © 2009, NewsBlaze,
Daily NewsTags: ,Manufacturing and Production:MiningandMetals, ,ID,TORONTO, ONTARIO
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