SYDNEY, AUSTRALIA: Fargo Enterprises Limited has signed a binding Term Sheet to acquire 100% of the issued capital in Odessa Minerals.
Odessa has entered into agreements to acquire a 90% interest in the Aries Project from Jindalee Resources Limited, a 100% interest in the Calwynyardah Project from Volclays Pty Ltd, and 100% interest in the Aries Extension Project from Celsius Resources Limited, which are located in the Kimberley region of Western Australia and are considered prospective for diamonds.
Odessa is also the registered holder of 11 applications for exploration licences comprising the Ellendale, Liveringa, Mt Cedric, Mt Abbott, Mt Wynne Creek and White Rocks project areas, which are located in the Ellendale Diamond Field, the Calwynyardah Diamond Field and the Noonkanbah Diamond Field in the Kimberley region of Western Australia and are considered prospective for diamonds.
In connection with the Transaction, Fargo Enterprises intends to raise a minimum of $4 million at an issue price of $0.02 per fully paid Ordinary share pursuant to a public offer under a Prospectus. Funds raised will primarily be spent on exploration activities on the Projects.
On completion of the transaction, Odessa will become a wholly owned subsidiary of Fargo Enterprises, and the Company’s main undertaking will be the exploration and development of the projects.
Zane Lewis, Director of Fargo said, “This acquisition is a transformational shift for the Company. Odessa’s opportunistic consolidation of some of the most under-evaluated diamond fields of Western Australia now positions Fargo to take advantage of recent rising diamond prices.
“We project strong future demand for ethically sourced diamonds and this transaction hails a new era in diamond exploration for WA.”