Alecto shareholders to vote on AME West Africa buy on 2 October.
M2 EQUITYBITES-September 17, 2013-Alecto shareholders to vote on AME West Africa buy on 2 October(C)2013 M2 COMMUNICATIONS http://www.m2.com
17 September 2013 - UK-based, Africa-focused precious and base metals explorer Alecto Minerals plc (LON:ALO) said on Tuesday it will convene a general meeting on 2 October to approve the takeover of AME West Africa Ltd, a subsidiary of African Mining & Exploration plc (LON:AME).
As previously unveiled, Alecto has sealed a binding deal to acquire AME West Africa in exchange for GBP1.25m (USD2m/EUR1.5) worth of shares. The buyer will pay for the company by issuing some 108.69m shares priced at GBP0.0115 apiece for a total of GBP1.25m with additional deferred payments pending resources proving.
Alecto has also raised a further GBP600,000 via a GBP250,000 placing and issue of convertible loan from AME and Tamimi Investments and Mining Co, an Alecto cornerstone investor. The latter is pending a general meeting by Alecto.
Further, AME will keep a net smelter royalty of 1% on the first 300,000 ounces of gold extracted from the Malian Gold Licences. Alecto will also pay deferred consideration payments to Electrum Ltd, the previous owners of the Malian Gold Projects.
AME West Africa owns the Kossanto Gold Project, as well as two exploration licences in south-west Mali.
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