Avenue Resources Limited (AVY) is pleased to announce that it has signed a conditional agreement to acquire Magdalena Coal Inc (“Magdalena”), a private company associated with the Forbes & Manhattan Group. Magdalena Coal has agreements to acquire the El Contento and El Carmen coal exploration properties (“The Projects”) in northern Colombia.
The commercial terms of the acquisition, which is subject to Avenue shareholder approval, includes the issue of 10 million shares on completion, following a minimum $7.5 million capital raising at 25 cents, then three further tranches of shares on completion of milestones involving drilling success and independent delineation, classification and reporting of JORC compliant mineral resources.
In addition, Avenue has a three year exclusivity agreement with the Vendors, whereby if the Vendors, its existing shareholders, any associates or related corporations obtain an interest in or a right to obtain an interest in a coal project wholly or partially within Colombia and within 100km of the Projects it must be offered to Avenue at the cost incurred by the party acquiring the interest.
The Board is also pleased to announce that Mr Marcelo Albuquerque is to be appointed General Manager – Coal on completion of the transaction. Mr Albuquerque is a geologist with 20+ years experience, including four years as Exploration Manager for Vale Colombia with a focus on coal exploration.
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