BACKGROUND TO THE PROPOSED TRANSACTION As announced on 16 June 2022, the Company has entered into a share purchase deed with Metal Tiger PLC (MTR) (SPD) to acquire the remaining 49% of the issued shares in Kalahari Metals Limited (KML) (Proposed Transaction) that it does not already own. The Company currently holds a 51% ownership interest in KML, via its wholly owned subsidiary, Cobre Kalahari Pty Ltd (Cobre Kalahari). Under the terms of the Proposed Transaction: • the Company (or its nominee) will initially acquire 24.5% of the shares in KML (Sale Shares) from MTR (increasing its interest to 75.5%) for total cash consideration of GBP £750,000 (Initial Acquisition); and • MTR will grant the Company a call option for it (or its nominee) to acquire the remaining 24.5% of shares in KML (Option Shares), exercisable for either GBP £750,000 in cash or the equivalent in Shares, for a period of 12 months after completion of the Initial Acquisition (Call Option), providing the Company a pathway to 100% ownership of KML. Subject to the 30% limit in Resolution 2, the consideration in respect of the Call Option may be paid by a combination of cash and shares.
CBE Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
