MOD Resources to Consolidate 100 Percent of T3 Project

MOD Resources Limited (ASX:MOD) has announced that it has executed binding agreements with Metal Tiger (LSE:MTR) to acquire MTR’s 30 percent stake in the T3 Project so that at completion MOD will own 100 percent of the T3 project in Botwana.

MOD has also executed binding agreements on the rights to purchase, at MOD’s election, MTR’s 30 percent interest in all other joint venture exploration assets with MOD up to 3 years from completion.

As highlighted in the press release:

• Binding agreements with MTR to acquire MTR’s 30 percent interest in the substantial T3 project
• 100 percent consolidation streamlines proposed financing and development of the T3 project
• Transaction ~14 percent accretive for MOD shareholders in terms of per share ownership of T3 project
• MOD receives rights to acquire, at its election, all other JV exploration assets
• These rights provide significant additional option value for MOD shareholders
• MTR to continue to fund its 30 percent share of JV exploration assets, outside the T3 project
• Total scrip consideration ~A$26.6 million, significant restrictions including 12 months escrow

Managing director of MOD, Julian Hanna said:

“The MOD Board believes this binding agreement with Metal Tiger has the potential to add significant value for MOD shareholders.”

Click here to read the full MOD Resources (ASX:MOD) press release.