SYDNEY: A share acquisition agreement has been executed between Auburn Resources Limited and Armour Energy Limited, pursuant to which Auburn will acquire Armour’s wholly owned subsidiary, Ripple Resources Pty Ltd.
Ripple currently holds a number of mineral exploration tenements in Queensland and the Northern Territory considered to be prospective for zinc, lead, and gold.
Under the Agreement, in consideration for the allotment 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 allotment, Armour will hold approximately 12.5% of Auburn. Completion is expected to occur in April 2021.
Auburn, which will be approximately 39% owned by DGR Global after completion of the transaction, holds interests in a range of mineral projects in Queensland and the Northern Territory prospective for zinc, copper, gold, lead, cobalt, and nickel.
Auburn holds an extensive zinc-copper-gold 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, where relevant, to ensure the Armour’s rights of access and development for hydrocarbon deposits are preserved.
Commenting on the announcement, DGR Global’s General Manager, John Bierling said: “Execution of the share acquisition agreement of Ripple Resources by Auburn and its completion in due course, represents a strong addition to the Auburn asset portfolio and is a highly complementary and logical fit for Auburn, enhancing Auburn’s diversified commodity portfolio, across a number of deposit types.
These are exciting project additions, and the acquisition provides a unique opportunity to add further value and significant prospectivity to Auburn. We look forward to commencing exploration and realising value from these projects at the earliest opportunity.
With the initial asset portfolio now nearing completion, our attention is now squarely focussed on progressing Auburn’s IPO plans for ASX listing in 2021, subject to market conditions.”
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