(Copied from the PNE Board, hbennet)
Sage in lithium deal
Sage in lithium deal
Fraser Beattie
Business News |
Subiaco-based
Paynes Find Gold is seeking to become a lithium miner through the reverse takeover and backdoor listing of a European mining company backed by local businessman
Tony Sage.
Paynes Find told the market today it planned to acquire European Lithium AT, a wholly owned subsidiary of European Lithium and the sole owner of the Wolfsberg lithium project in Austria.
Mr Sage’s Perth-based company,
Cape Lambert Resources, is a major shareholder in the Euro Lithium parent company with a 26.2 per cent stake.
Under the terms of the deal, Paynes Find will wholly acquire the Euro Lithium subsidiary in exchange for $750,000 in cash and 187.5 million shares, which, at Paynes Find’s last closing price of 8.3 cents a share, is equal to $15.6 million.
Paynes Find will also issue 62.5 million shares subject to the completion of certain milestones, and will pay a further $1.5 million once the transaction has been completed.
As the proposed acquisition will result in a change in the nature and scale of the business, Paynes Find will be required to complete a minimum $6 million capital raising (at a price yet to be determined) in order to comply with ASX relisting rules.
If the deal is successful, the company will be renamed European Lithium Limited, with two of Paynes Find’s existing directors to be replaced with Euro Lithium nominees
Mr Sage and Steve Kesler (a former chief executive of ASX-listed company Pacific Nickel).
Following completion of the transaction, the combined company will wholly own the Wolfsberg project as well as the Paynes Find gold project.
“Cape Lambert is pleased a transaction has been done with European Lithium given it (holds) a quality asset and at a time when lithium is in high demand,”
Mr Sage said.
“I am also pleased that this unlocks about $6 million of value at the proposed Paynes Find listing price for Cape Lambert shareholders.”
Cape Lambert shares were 6.8 per cent lower to 2.7 cents each at the close of trade.
