Mining Projects Group Limited (MPJ) announces it has executed a binding Heads of Agreement to acquire two prospective Exploration Permits for Coal applications (EPCAs) north and east of Kingaroy, Queensland. MPJ has reviewed a number of coal projects over the preceding two quarters. The Company will continue to seek further opportunities to develop a prospective portfolio of coal projects. The HoA entered into by MPJ is to acquire 100% of Delcarmen Energy Limited for $1 million with consideration for the acquisition to be completed on a 50:50 equity and cash basis. Delcarmen has filed two EPCA’s north and east of Kingaroy (applications for EPC 2527 & EPC 2528), approximately 170kms west of Brisbane.
The $1 million consideration for the acquisition will be paid on the following basis – non refundable deposit of $20,000 paid on execution of the HoA; $80,000 to be paid on completion of the acquisition of Delcarmen; 12,500,000 performance shares will be issued on completion of the acquisition of Delcarmen, each of the performance shares will convert to an ordinary fully paid share, at 2 cents per share, in the Company upon the later of completion of the acquisition of Delcarmen or the grant of EPCA 2527; $200,000 to be paid on the later of completion of the acquisition of Delcarmen or the grant of EPCA 2527; 12,500,000 performance shares will be issued on completion of the acquisition of Delcarmen, each of the performance shares will convert to an ordinary fully paid share, at 2 cents per share, in the Company upon the later of completion of the acquisition of Delcarmen or the grant of EPCA 2528; $200,000 to be paid on the later of completion of the acquisition of Delcarmen or the grant of EPCA 2528; milestone payment of $250,000.
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