Noble Mining To Sell Brazilian Shareholding
Canada’s Ecometals Limited announced today [Mar.27] that its wholly owned Bermuda subsidiary, Noble Mining Ltd., has entered into an agreement with a group of investors for the sale of Noble’s entire holding of shares in its wholly owned Bermudian subsidiary Ironman Ltd.
Ironman is the 99 percent shareholder of Ecometals Ferro do Amapá Ltda [EFAL], a Brazilian company which holds iron exploration rights in Amapa, Brazil.
The purchase price for the sale by Noble is made up of:
- The assumption of approximately $130,000 of debt currently existing at Ironman and EFAL;
- US$200,000 paid in cash at closing;
- A further US$200,000 in cash paid before December 31, 2013 provided the purchasers decide to continue with the Amapa Iron Project beyond July 31, 2013 and;
- Once the Amapa Iron Project commences production, an amount in cash every three months calculated on the basis of US$2 per metric ton of contained iron subject to the Additional Payment being limited to a maximum amount of $1,000,000.
In addition to the above sale, and further to the company’s announcement on January 10, 2013 regarding the Company’s agreement with BalanTrove Management LLC, whereby BalanTrove had agreed to assist the company in evaluating, structuring and negotiating a potential acquisition of a producing gold mine in South America, the company has agreed to extend this agreement for a further three month period with a monthly work fee payable in in the form of common shares of the company to BalanTrove.
The work fee comprises of the issuance of an aggregate number of shares having a total value of C$20,000 per month with the number of shares to be issued based on the volume weighted average trading price of the shares for the thirty-day period immediately before the applicable date of issuance of the shares but subject to a minimum issue price of C$0.05 per share.
The issuance of the securities under the above agreement is subject to the approval of the TSX Venture Exchange. All securities issued pursuant to the above agreement will be subject to a four-month statutory hold period beginning on the applicable date of issuance of the securities.
The CEO of the Company, Mr. William Lamarque commented: “As with the vast majority of junior exploration companies these past few months have been difficult for the company so we are very pleased to be able to report the sale of our iron assets in Brazil as well as good progress in our continued discussions with interested parties for the disposal of our manganese assets in northern Brazil. Although nothing is certain, we look forward to disposing of these non-core assets in Brazil and hope to announce progress on this in the not too distant future.
“Casting our eyes further ahead, we continue to work diligently on other potential projects with the intention of fulfilling our stated goal of growing into a profitable mid-tier gold producer focused in geologically prominent South American jurisdictions. We hope to provide further positive news on both of these objectives in the near future.”
Ecometals Limited is a Canadian-listed mineral exploration and development company focused on mineral resources in Latin America. Apart from its interests in manganese, Ecometals also has gold exploration activities in Ecuador.
