Tian Poh Resources Limited (ASX: TPO) – $0.175
16 Feb 2015
Tian Poh Resources Limited (ASX: TPO) has secured an exclusive option until 11 June 2015 to acquire 51% of the Zuun Mod Molybdenum-Copper Deposit located in southwestern Mongolia (Figure 1).
Figure 1. Location of Zuun Mod Project
Under the terms of a Memorandum of Agreement with Erdene Resource Development Corp. (TSX: ERD), option consideration is US$50,000 plus advancing a non-interest bearing debenture of US$200,000. In the event the company does not exercise its option, the debenture proceeds will form part of the purchase consideration.
Upon exercising the option:
- Consideration of US$4,800,000 over 5 years for a 51% stake in the Project and undertaking to invest US$10,000,000 into the project over a period of 6 years. US$1,200,000 in cash and shares of the consideration amount is payable up to the first anniversary of the closing date.
- The company may increase its shareholding to 70% or 90% with additional work commitments into the Project
- The company has an option to acquire the remaining interest in the Project
- Grant a Net Smelter Royalty of 1% (with an option to buy-out on agreed terms) payable after return of consideration and investments made into the Project
Completion of the transaction is subject to the company obtaining shareholder and regulatory approvals.
For further information, visit www.tianpoh.com
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