SYDNEY, AUSTRALIA: Coppermoly Limited (ASX: COY) has entered right into a legally binding share buy deed for the sale of all of the shares in its wholly owned subsidiary, Copper Quest PNG Limited to Ever Leap Services Limited for $500,000.
Copper Quest is the holder of Coppermoly Limited’s exploration licences in West New Britain within the Independent State of Papua New Guinea (PNG),
The proposed sale follows the outbreak of COVID-19 and ensuing restrictions on journey and disruption to exploration actions over the final few years and can allow the Company to focus on its extremely potential grounds for copper gold and critical minerals within the Eastern Successions of Mt Isa, Northwest Queensland the place administration can extra successfully progress exploration activities.
The consideration for the Proposed Sale comprises the buy-back and cancellation by the Company of roughly 1,955,024,388 fully paid ordinary shares within the Company (Shares) held (or to be held) by the Buyer and sure different main Shareholders and administrators (Buyback), along with a money payment to the Company of $500,000.
As such, the Proposed Sale will additionally assist to address any perceived focus of voting energy within the Company, with the hope that this will facilitate greater curiosity and monetary support of the Company from the Australian monetary community, reducing monetary reliance on a few key shareholders.
The Proposed Sale is topic to, among, different things, Shareholder approval and different usual regulatory approvals, additional particulars of that are contained within the Key Term Summary contained on this announcement and can be additional documented in a discover of assembly seeking Shareholder approval for the Proposed Sale, which is anticipated to be dispatched in late February/ early March.
Coppermoly Limited Managing Director, Dr. Wanfu Huang, said, “Having considered all of the choices of progressing projects in PNG and Australia, the Board is happy to attain an settlement with the main shareholders. This settlement would encourage the main shareholders to continuously fund the Company’s PNG projects, and permit the Company to focus on exploring our large tenement space within the potential Eastern Succession of Mt Isa. Meanwhile it provides a significant alternative for the Company to rebalance our share register to be extra attractive to Australian investors”.