Tian Poh Resources raises $1.6M, acquiring stake in Mongolian molybdenum-copper project
The funds were raised through a placement of 9 million shares priced at $0.18 each to sophisticated and professional investors. Each share includes a free attached option with an exercise price of $0.20 expiring 16th February 2016.
Zuun Mod has a Measured and Indicated Resource estimate of 218 million tonnes at 0.057% Molybdenum and 0.069% copper.
It is also located within 100 kilometres from an advanced TPO coal project, offering the potential to generate power from its own coal in the future.
The company intends to immediately commence a due diligence study leading into a Feasibility
Study to support the formulation of development plans for the Project.
Tian Poh has paid an option consideration of US$50,000 plus advancing a non-interest bearing debenture of US$200,000 to Erdene Resource Development Corp (TSE:ERD).
Upon exercising the option:
- Tian Poh will pay Erdene a consideration of US$4.8 million over 5 years for a 51% stake in the project and undertaking to invest US$10 million into the project over a period of 6 years. US$1.2 million in cash and shares of the Consideration amount, is payable up until the first anniversary of the closing date;
- The company may increase its shareholding up to 70% or 90% with additional work commitments into the project;
- It also has an option to acquire the remaining interest in the project by granting Erdene a Net Smelter Royalty (NSR) of 1% (with an option to buy-out on agreed terms), payable after return of consideration and investments made into the project.