Yes I know they claim $10 million as the headline, but you need to look into the details to calculate the actual value of the shares. They are using a very high valuation of the Fura shares to get to the $10 million value. The SP of Fura has fallen since this deal was announced so they are probably more like $4 million now. The current Fura SP is $CAD0.34.
Details of the Transaction
Fura and its wholly owned subsidiary entered into a merger of ruby assets agreement (the “Agreement”dated 14 July 2018 with Mustang Resources Ltd. (“Mustang”
. Pursuant to the Agreement, Fura will acquire controlling ownership in various entities owned by Mustang that hold rights to earn majority interests in 3 mineral concessions (being exploration licence 5030L and mining concessions 8955C and 8921C) in Mozambique as well as ownership of all existing site and ruby processing plant infrastructure (the “Assets”
.
The consideration payable to Mustang pursuant to the Agreement is A$10,000,000 and shall be payable as outlined below:
• Common shares in the capital of Fura (the “Consideration Shares”with a value equal to A$3,333,333 with such Consideration Shares to be issued at CAD$0.50, to be issued on or before 30 November 2018.
• Consideration Shares with a value equal to A$3,333,333 with such Fura Shares to be issued at CAD$1.40 to be issued on or before 30 November 2019.
• Consideration Shares with a value equal to A$3,333,333, with such Fura Shares to be issued at CAD$1.80 to be issued on or before 30 July 2020.
All of the Consideration Shares issued pursuant to the Agreement will be subject to lock-up agreements pursuant to which Mustang shall be restricted from selling or transferring such securities during the twelve months following the issuing of each tranche and a further 12 month period wherein the securities have to be provided to Fura preferentially for orderly placement.
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