Merah Resources (ASX:MEH) is preparing to reveal details of a material acquisition, with the ASX granting the company a trading halt to prepare.
Last month, Merah outlined that it is finalising a transaction to farm in to a copper project located in the Yukon territory of Canada.
The Fyre Lake project hosts the Kona VMS deposit, containing a total Resource of 8.93 million tonnes at 1.52% copper, 0.09% cobalt and 0.56g/t gold, classified as Indicated and Inferred in accordance with guidelines of the 2012 JORC Code.
The total consideration payable to the shareholders of Oresearch (Oresearch Shareholders) for the acquisition of 100% of the issued capital in Oresearch is up to $600,000 of Merah fully paid ordinary shares.
Merah is also to undertake a capital raising via a placement to an existing sophisticated investor, and an offer of a pro rata entitlement issue to existing shareholders on a 2 for 3 basis at $0.03 to raise a total of up to $800,000.
The entitlement issue to be underwritten by Patersons Securities.
The halt will remain in place until the opening of trade on Monday 11th August 2014, or earlier if an announcement is made to the market.
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