PERTH: Malachite Resources Limited has signed a Term Sheet to acquire the remaining 85% interest in Sunshine Mineral Limited that it does not already own.

Malachite has previously acquired 15% of Sunshine Minerals Limited, a private company incorporated in the Solomon Islands. Sunshine owns 80% of Sunshine Nickel which holds PL 01/18 located on the south coast of Santa Isabel Island. The remaining 20% of Sunshine Nickel is owned by local landowners.

The key terms of the proposed acquisition of Sunshine are summarised below:

1. a) Payment of $1.0 million by the issue of up to 12.5 million fully paid ordinary shares in Malachite at a deemed issue price of $0.08 (Upfront Consideration Shares);
2. b) Payment of $1.3 million (less any debts not disclosed to Malachite in the Term Sheet) by the issue of up to 16.25 million fully paid ordinary shares in Malachite at a deemed issued price of $0.08 upon the valid application for a mining lease for PL 01-18 being approved by the Mines Department (Deferred Consideration Shares);
3. c) All Malachite shares issued to the vendors to be subject to voluntary escrow arrangements for a 12 month escrow period.

The proposed acquisition is subject to the following conditions precedent:-The parties to enter into a formal share sale agreement; Malachite completing a minimum $300,000 equity capital raising; Malachite will seek shareholder and any necessary regulatory approvals for the proposed acquisition of Sunshine.