The Mount Adrah Gold Project hosts the Hobbs Pipe gold deposit, with an existing JORC 2012-compliant Mineral Resources estimate of 770,000oz Au:
- 12.1Mt @ 1.1g/t for 440,000 oz (Indicated Resources)
- 8.4Mt @ 1.1g/t for 330,000 oz (Inferred Resources)
Consideration for the acquisition is all-scrip with the details being:
(i) issue of 63,875,000 OrdinaryShares to the Vendors (or their nominees) (Initial Consideration)(at a deemed issue price of 1.6c per share);
(ii) issue of 67,000,000 A class Performance Shares to the Vendors (or their nominees) (Performance A Shares), on the terms and conditions set out in Annexure A;
(iii) issue of 67,000,000 B-class Performance Shares to the Vendors (or their nominees) (Performance B Shares), on the terms and conditions set out in Annexure A; and
(iv) 20,000,000 unquoted Options exercisable at $0.04 each on or before the date that is three (3) years after their issue (Consideration Options)
At the end of the last quarter, FRN had $1.978 million in the bank, but they haven’t been burning much with only $235,000 in estimated cash outflows in the current quarter.
Not sure what this acquisition means for FRN in the long term but it’s certainly put a bit of life into its share price today, currently up 20% to 2.4c with 30 million shares traded.
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