Mustang Resources Limited (ASX: MUS) – $0.200

01 Sep 2015

Mustang Resources Limited (ASX: MUS) has entered into a binding term sheet to acquire an additional two graphite licences in the Cabo Delgado Province of Mozambique (Figure 1).

 

MUS Cabo Delgado graphite

Figure 1. Location of the company’s tenements with conceptual strike extension based on neighbouring deposits

 

 

The company is currently flying EM surveys over six of its licences in the Cabo Delgado Province, but has elected to fly over a further four licences. Under the Term Sheet, the company will have the option to acquire the two licences out of the four additional licences that it deems will best suit its graphite development profile in Mozambique.

 

The total consideration for the acquisition of the option to acquire two additional licences will be:

 

  1. The payment of A$150,000 payable in fully paid ordinary shares in the capital of the company based on a 10 day volume weighted average price from the date of settlement.

 

  1. The payment of A$50,000 in cash.

 

  1. The issue of Class A Performance Rights in the company calculated at the rate of the number of shares issued in point 1 multiplied by 1.4 which would vest upon the delineation of a JORC compliant Inferred Graphite Resource of a minimum of 50Mt at >10% TGC on either of the two licences acquired.

 

  1. The issue of Class B Performance Rights in the company calculated at the rate of the number of shares issued in point 1 multiplied by 1.6 which would vest upon the delineation of a JORC compliant Inferred Graphite Resource of a minimum of 100Mt at >10% TGC on either of the two licences acquired.

 

  1. The issue of Class C Performance Rights in the company calculated at the rate of the number of shares issued in point 1 multiplied by 1.8 which would vest upon the delineation of a JORC compliant Inferred Graphite Resource of a minimum of 500Mt at >10% TGC on either of the two licences acquired.

 

The EM survey will take approximately 4 weeks to complete. The company anticipates to receive the final processed data by mid-October 2015.

 

 

For further information, visit www.mustangresources.com.au

 

 

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