THE BOURSE WHISPERER: Metalicity Limited (ASX: MCT) has completed commercial negotiations with liquidating Kagara Limited, which has resulted in the signing of a Deed of Release and Termination covering all potential future payments and obligations relating to the acquisition of the Admiral Bay zinc project.
Metalicity explained the Deed of Release and Termination extinguishes all potential future payments and obligations owed to Kagara by Metalicity.
Metalicity has agreed to pay Kagara $750,000 cash and 23 million fully paid ordinary shares in Metalicity.
“We are pleased to finalise the acquisition of the Admiral Bay zinc project,” Metalicity managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.
“Discussions with various industry participants had suggested an unencumbered project was preferable for any potential future joint venture partner and we have now achieved that.
“Metalicity controls a 100 per cent unencumbered interest in approx. 6.3 million tonnes of contained zinc equivalent metal for the total sum of just over $3 million.
“The company is progressing a new Mineral Resource Estimate and Scoping Study on Admiral Bay, both due in mid-2016.”