Aston Bay Holdings Issues Shortfall Shares, Proposes Strategic Deal for Drilling Equipment

Aston Bay Holdings Ltd. (TSXV:BAY) has signed a memorandum of understanding with Lyncorp International Ltd., which is 100% owned by David Mullen, to purchase four Christensen CS10 Core Drills with all associated equipment in addition to other equipment. The closing of the deal will be subject to, among other things, confirmation that the title to the equipment is in good standing, and the receipt of an appraisal for the equipment.

As quoted in the press release:

The MOU will be superseded by a definitive agreement that will be entered into by the parties, which will provide that payment for the Equipment will consist of 2,700,000 shares of Aston Bay subject to receipt of TSX Venture Exchange approval. Additional payment will consist of $325,000 CDN being payable to Lyncorp in 12 months from the closing date of acquisition payable as negotiated by the parties in the definitive agreement and which amount will be secured against a portion of the Equipment, all subject to approval of the TSX Venture Exchange. Lyncorp and the Company agree they will have up to 45 days from the date of the MOU to the time of closing of the transaction, which shall be the later of the date of the share issuance to Lyncorp or the date when Aston Bay takes possession of the Equipment.

Aston Bay CEO, Benjamin Cox, said:

In a tight capital market, this agreement puts a large quantity of valuable equipment on Aston Bay’s balance sheet, enabling us to prepare to drill for the 2015 season. In addition, this win-win transaction shows that the Lyncorp group places value on the Storm Copper project, and we welcome them as a shareholder.

Click here to read the Aston Bay Holdings (TSXV:BAY) press release
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