ASX Announcement 10 October 2016
Sale of Coolgardie Gold Assets
Share Sale Agreement for the sale of the Coolgardie Gold Assets Executed
On 3 August 2016 the Company announced that it had entered into a Binding Heads of Agreement with Primary Gold Limited ("Primary") for the sale of its 100% owned Coolgardie gold assets ("Assets") for consideration of $10m satisfied by A$5m in cash, to be paid in instalments over a 12-month period and A$5m comprised of 40 million Primary ordinary shares with an issue price of 12.5 cents per share. MacPhersons Resources Limited (ASX: MRP) is pleased to announce that it has entered into the formal Share Sale Agreement ("Agreement") with Primary Gold Limited in relation to the sale of the 100% owned Coolgardie Gold Assets.
The sale is to be effected through the sale of MacPhersons 100% owned subsidiary company MacPhersons Reward Pty Ltd. Settlement of the sale is expected to occur next week. The consideration will be paid to MacPhersons as set out below.
Cash Consideration
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A$0.5m deposit in cash has been received;
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On Completion under the Agreement, Primary pay A$1.5m to MacPhersons;
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Six (6) months from Completion, Primary pay A$1.5m to MacPhersons;
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12 months from Completion, Primary pay the final cash payment of A$1.5m to MacPhersons; Share Consideration
The issue of Primary Shares to MacPhersons are as follows:
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The 40 million shares at an issue price of 12.5 cents per share.
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The Shares will be escrowed in three equal tranches over the 12 months from Completion:
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One third of the Primary ordinary shares or 13,333,333 will be escrowed for six (6) months;
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The second tranche of Primary shares of 13,333,333 will be escrowed for nine (9) months, and
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The final tranche of 13,333,334 Primary shares will be escrowed for 12 months.
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The Agreement contained terms, conditions and warranties consistent with agreements of this nature.
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For further information please contact:
Jeff Williams
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OR
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Andrew Pumphrey
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Managing Director
+61 418 594 324
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General Manager
+61 419 965 976
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About MacPhersons
MacPhersons Resources Ltd (MRP) is a Western Australian resource company with a number of advanced gold, silver and zinc projects.
The company's long term objective is the development of its existing assets and unlocking the full potential of its 100% owned highly prospective Boorara and Nimbus projects.
For more information on MacPhersons Resources Limited and to subscribe for regular updates, please visit our website at: www.mrpresources.com.au or contact our Kalgoorlie office on [email protected] or - 08 9068 1300