Ann: Agreement to Acquire Advanced Copper Project, page-2

re: Ann: Agreement to Acquire Advanced Copper... Sydney - Thursday - June 2: (RWE Aust Business News) - Ezenet
(ASX:EZE) has executed an agreement with the Chilean company SCM Compania
Minera Chuminga to acquire the advanced and highly prospective
Chuminga copper-gold project.
Executive chairman Wolf Martinick said this strategic acquisition
meets the objective of securing a high quality, advanced
exploration project with the potential for early cash flow in one of the
world's most prospective and politically and financially stable
countries.
The total consideration of USD6.3 million consists of a payment
of USD1.3 million, payable as USD1 million in cash and USD300,000 in
Ezenet shares for 20pc interest, transferable to Ezenet upon
shareholder approval of the change of activities of the company and an
option to acquire the balance, subject to satisfactory legal due
diligence.
Subject to obtaining the requisite shareholder approval, the
company shall be entitled the option within 18 months after acquiring the
rights to the initial 20pc interest for a consideration of USD5 million
payable in cash or a combination of cash and Ezenet shares such that the
vendor may acquire no more than 19.9pc of the issued share capital of
Ezenet.
If, after the company has acquired the remaining 80pc, the vendor
holds less than 19.9pc of the issued share capital of the company the
vendor may subscribe for Ezenet shares to achieve 19.9pc.
If Ezenet exercises the option, and the project is not in
production by 31 December 2018, Ezenet must pay the vendor $250,000
annually commencing on 1 January 2019 and ending upon the commencement of
production.
Ezenet shall pay the vendor a royalty of 1pc of the net smelter
return.
The acquisition will be funded from existing funds and a share
placement.

reuters.