http://www.*.com.au/companies/news/56457/bisan-bets-on-botswana-graphite-56457.html
Bisan Limited (ASX:BSN) will trade higher after proposing to invest in a Botswana graphite project, to be owned by a company to be formed called Pencil Hill.
The company intends to acquire a 30% interest Pencil Hill that will hold a 80% interest in the graphite prospecting licence.
Bisan will also have a first right of refusal to subscribe to additional shares and acquire an additional 21% giving Bisan the opportunity to move to 51% of the issued capital.
Plans are also being made to list the new company as an initial public offering.
The consideration for the additional equity will be based on an agreed value most likely to be the IPO price offered to the public or by an independent expert selected by both parties.
The proposed acquisition will be conditional upon due diligence drilling to be completed by Bisan to verify previous
results, and necessary shareholder and regulatory approvals.
If Bisan does proceed, then the consideration to subscribe to 30% of the issued capital of Pencil Hill is $2 million.
In addition, Bisan currently holds 13.8% of the issued capital of P-Fuel Limited, an unlisted public company.
Bisan will invest a further $150,000 by subscribing for 3,000,000 new ordinary shares in P-Fuel at $0.05 per share to increase its equity interest to 16.06%.
P-Fuel is developing technology to convert plastics into diesel fuel.
P-Fuel also proposes to undertake an IPO under which Bisan shareholders will be given a priority allocation.
Bisan is also proceeding with a placement to raise $549,463 via issue of 36,630,895 shares at $0.015, with free attaching options exercisable at $0.05 and expiry on 31 December 2018.
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