AAJ – Aruma Resources Limited
Power Metal Resources PLC LSE AIM: POW, the London-listed exploration company seeking large-scale metal discoveries across its global project portfolio announced a Merger Agreement (the “Merger”) on 15 December 2022.
The Merger included Power Metal’s Wilan Project and additional licences in the Mt Isa region of Queensland to form NHMHA with Power Metal owning 20% of NHMHA Issued Share Capital. NHMHA created a Uranium / Copper focused vehicle.
Following the successful completion of due diligence, ASX listed Aruma Resources Limited (“Aruma”) (ASX: AAJ) announced a conditional agreement for the acquisition of 100% of NHMHA on 27 May 2024, providing Power Metal with exposure to Uranium and Copper exploration potential on the ASX Markets.
As consideration for the acquisition, Aruma proposes to issue the following to NHMHA shareholders:
· 26.5 million fully paid AAJ ordinary shares, which will be subject to a voluntary escrow period of 6 months from the date of issue;
· 24.5 million options each non-transferable and exercisable into one ordinary AAJ share for a nil exercise price upon Aruma securing program for environment protection and rehabilitation (PEPR) approval for drilling at the Wilan Project in South Australia, and obtaining any other necessary approvals to conduct drilling at the Wilan Project; and
· 28 million options each non-transferable and exercisable into one ordinary AAJ share for a nil exercise price upon AAJ reporting an aggregate drilling intercept (in one drill-hole) of 3m at >600ppm U308, or at least 20m at >0.8% Cu or metals equivalent at one of the new projects.
AAJ will also pay a 2% net smelter royalty to NHMHA shareholders over any minerals extracted and sold from the tenements.
