PERTH: A Term Sheet has been executed between Auburn Resources Limited and Armour Energy Limited for the acquisition of Armour’s wholly owned subsidiary, Ripple Resources Pty Ltd by Auburn, a news release said.
Ripple currently holds a number of mineral exploration tenements in Queensland and the Northern Territory considered to be prospective for lead and/or zinc and gold.
Under the Term Sheet, in consideration for the issue of 5.6 million fully-paid ordinary Auburn shares, Armour will transfer its legal, beneficial and unencumbered interest in 100% of the shares in Ripple to Auburn. Immediately following the transaction, Armour would hold approximately 12.5% of Auburn.
Auburn, which is currently 45% owned by DGR Global, holds interests in a range of mineral projects in Queensland and the Northern Territory prospective for copper, gold, lead, zinc, cobalt and nickel.
Auburn holds an extensive lead-zinc focused exploration position in Northern Queensland and the Northern Territory, and the acquisition of Ripple’s tenement holdings is considered complementary to Auburn’s existing tenement holdings in the same states.
The parties have agreed to include overlapping tenure arrangements in the formal transaction documents to ensure the Armour’s rights of access and development are preserved.
Commenting on the announcement, DGR Global’s General Manager, John Bierling said: “The acquisition by Auburn of Ripple Resources is a highly complementary and logical fit for Auburn, enhancing Auburn’s diversified commodity portfolio, across a number of deposit types, and adding to Auburn’s good spread of project maturity from extensive untested greenfields in the Tanumbirini Project to walk up high priority drill targets in the Nicholson Project.
The acquisition provides a unique opportunity to add value and significant prospectivity to Auburn, and I look forward to factoring these projects into Auburn’s forward exploration plans.”