Precious Metal Resources (ASX:PMR) has signed a binding Term Sheet to acquire CK Graphic, a visual communication company founded in Malaysia.
CK Graphic creates computer-based architectural rendering, 3D modelling and visualisation, architectural illustration as well as interior designing, and walk-through animation with a Photo-Realistic output.
The proposed consideration for CK Graphic is the issue of 37,500,000 fully paid ordinary shares at $0.20 per, with 37,500,000 attaching options exercisable at $0.20 per share within 3 years from the date of issue.
PMR must raise a minimum of $3,000,000 in new capital via a prospectus, through the issue of a further 15,000,000 fully paid ordinary shares, also priced at $0.20.
The proposed transaction is subject to due diligence and the execution of a formal sale and purchase agreement between the parties.
It is proposed to complete due diligence, obtain shareholder approvals and commence fundraising by the end of 2014.
Further details of the assets or business proposed to be acquired will be provided following completion of the due diligence including information about the likely effect of the transaction on the entity’s total assets, total equity interests, annual revenue and annual expenditure.
PMR has also executed a mandate with Sanston Securities Australia to act as Lead Manager and corporate financial advisor to the capital raise and transaction.The company holds the Gibsons Mine in northern New South Wales where drilling in the June quarter intersected results including 1.8 metres at 12.76% zinc, 7.06% lead, 7.13% copper and 224.3 grams per tonne silver; 1.5 metres at 28% zinc, 9.6% lead, 2.6% copper and 62.9g/t silver; and 1.8 metres at 19.98% zinc, 10.69% lead, 0.9% copper and 41.4g/t silver.
