Pacific Wildcat Resources (TSXV:PAW) entered into a formal agreement with Muscadine Limited for the sale of its wholly owned Mozambique subsidiary, Tantalum Mineração e Prospecção Limitada. The transaction is scheduled to close on November 15, 2012.
Terms of the agreement include:
Under the terms of the Sale Agreement, Muscadine will purchase the TMPL Shares and associated tantalum rights in consideration of the payment to PAW on closing of:
1) a cash payment of US $3 million, and
2) the transfer and delivery to PAW of an aggregate of 8,872,727 PAW shares currently owned by Muscadine.
Darren Townsend, PAW’s President and CEO stated:
Now that we have closed on the acquisition of the 70% indirect interest in the Mrima Hill Niobium and Rare Earth project in Kenya, we feel it appropriate to concentrate our efforts on advancing the Mrima Hill project. Whilst we believe in a strong future for TMPL, given the current state of the capital markets and with a view to minimizing dilution of shareholders at current low equity prices, we believe the sale of the TMPL asset to finance ongoing activities at Mrima Hill is beneficial to the Company and its shareholders and we look forward to working with Muscadine to facilitate completion of the sale.