LONDON: Ajax Resources, a U.K.-listed special purpose acquisition company focused on natural resources (LSE: AJAX), has reached an agreement to acquire Puna Metals S.A., the company that holds the mining rights to the Eureka Project in Argentina, the company confirmed Wednesday.
The acquisition, valued at $170,000 in cash, allows Ajax to take control of the advanced exploration-stage project, which could become a low-cost gold and copper mine within three to four years, subject to permitting and other factors.
Eureka, located in the northwestern province of San Salvador de Jujuy, Argentina, consists of 12 fully owned licenses. The site includes the historical Eureka Mine, where gold and copper extraction dates back to the 16th and 17th centuries.
Under the terms of the deal, an initially proposed $100,000 deferred consideration payable in equity securities has been replaced by an additional $50,000 in cash. Bezant Resources plc (Bezant) will also transfer intra-group loans related to Puna to Ajax.
The acquisition is expected to be completed by May 20.
Stock Market Moves and Fundraising Plans
Following the acquisition, Ajax plans to seek admission for trading on the Aquis Stock Exchange Growth Market (AQSE) and conduct a fundraising round by issuing new ordinary shares at £0.04 per share—a 33.3% premium from its previous trading suspension price of £0.03.
Company executives see this move as a strategic step toward acquiring undervalued assets in the natural resources sector. The Board also aims to list its shares on another leading European stock exchange within the financial year.
As a result, Ajax plans to cancel its listing on the U.K.’s Main Market and the Official List, as the acquisition means it will no longer qualify as a shell company under FCA regulations. Trading in Ajax’s shares remains suspended and is expected to remain so until cancellation of trading on the Main Market takes effect on May 20.
CEO Comments on Eureka’s Potential
Ippolito Ingo Cattaneo, CEO of Ajax, said the company is eager to fast-track development of the Eureka Project and delineate its resource to JORC standards. Drilling activities are expected to begin this year, once necessary local approvals are obtained.
“Pre-JORC estimates indicate Eureka may hold approximately 62 million tonnes grading at approximately 1% copper and approximately 52,000 ounces of gold as credits,” Cattaneo said in a statement.
Ajax is also evaluating additional acquisitions in Argentina, citing its attractiveness for junior natural resources companies focused on developing high-potential assets.