Laconia Resources sells off Lennons Find project

THE BOURSE WHISPERER: Laconia Resources (ASX: LCR) has entered into a Binding Terms Sheet to divest 100 per cent of its interests in the Lennons Find project in Western Australia to unlisted entity Musketeer Minerals.

Laconia has a 100 per cent interest in the Rasuhuilca copper-gold-silver project in Southern Peru where the company is currently focusing its exploration efforts, as well as on its other Latin American assets.

Laconia said it was committed to further exploration and development of it’s the Rasuhuilca project in Peru.
 
Laconia and Musketeer have entered into the Binding Terms Sheet to record the principal terms agreed between the parties for the latter’s acquisition of the interest in these mining and exploration assets, with the intention of Musketeer vending the assets into a shell company.

Musketeer’s interest in the Lennons Find project has emerged through that company’s search to acquire a new mining business activity by way of an ASX-listed entity, or shell company.

Laconia controls the mining assets and associated permits, namely a 95 per cent interest in M45/368 and a 100 per cent interest in E45/3293, which collectively make up the Lennons Find project.

The principal terms of the Binding Terms Sheet include:

Upon signing of Binding Terms Sheet Laconia will receive a non-refundable deposit of $100,000 cash for a six month exclusive option to acquire the Lennons Find project; and

Within 7 days of Musketeer or the Shell company listing on the ASX or Musketeer or the Shell company completing a capital raising of $2 million (by way of equity, debt or combination):

• Laconia will be issued a 10 per cent equity stake (fully paid ordinary shares) in either Musketeer or the Shell Company (at Laconia’s election);

• Laconia will receive $400,000 cash from either Musketeer or the Shell Company; and

• LCR may nominate a Board member to be appointed as a non-executive director on Musketeer’s Board or on the Board of the Shell company (at Laconia’s election).

“The transaction is subject to all regulatory approvals including any necessary shareholder approvals,” Laconia Resources explained in its ASX announcement.

“The terms of this transaction allow Laconia to realise value held in the Lennons Find project while allowing Laconia shareholders to retain exposure to, and gain a direct benefit from the exploration in the region.”

Laconia is also announced it had recently lodged a Research and Development Tax concession application for expenditure incurred during the 2011/12 financial year which has now been assessed by AusIndustry and the Australian Taxation Office.

Laconia has now received the Research and Development tax offset amount of $486,000.