USD $4,127.96
Goldman Seckold and Nightingale to join board as Uvre locks in $4M in firm commitments
Uvre Limited (ASX:UVA) has signed a binding agreement to acquire 100% of the share capital in Minerals Exploration Limited (MEL), the owner of New Zealand-based gold explorer Otagold Limited.
As part of the deal, well-known mining executives Norman Seckold and Peter Nightingale — major shareholders of MEL — will join Uvre as Non-Executive Directors. Upon completion of the acquisition and associated equity raise, Seckold and Nightingale will hold respective 16.5% and 1.3% stakes in Uvre.
Otagold holds a 100% interest in three exploration permits and two applications in New Zealand, covering 332 square kilometres of highly prospective ground. Its flagship project is the Waitekauri Gold Project, located 8km west of OceanaGold’s 10Moz Waihi gold mine on the North Island. Waitekauri also neighbours three other +1Moz deposits.
Historical drilling at Waitekauri recorded gold grades of up to 48g/t Au+Ag, and the area hosts extensive mineralisation with multiple drill targets already defined.
The acquisition is conditional on shareholder approval, due diligence, and completion of a $4.0 million equity raise, priced at 8c per share. Uvre has already secured firm commitments for the full amount from a well-supported bookbuild, including contributions from Seckold ($500,000) and Nightingale ($100,000), subject to approval.
Uvre will issue 75 million fully paid ordinary shares at a deemed issue price of 8c per share for a total consideration of $6.0 million to MEL’s vendors. Bell Potter Securities Ltd is managing the equity raise.
Uvre Executive Chairman Brett Mitchell said:
This transaction is an exceptional opportunity for Uvre on several levels.
Norm and Peter will bring a wealth of knowledge and experience in the resources business, along with a track record of creating substantial shareholder value through resource asset exploration and project development.
The Otagold projects led by Waitekauri have compelling gold exploration upside in a tier-one jurisdiction, as shown by the extensive mineralisation and drilling targets already identified.
The combination of Norman’s well-known record in building successful mining projects combined with the talented Uvre team, the immense exploration upside at these projects and the strong financial position which will follow the placement will leave Uvre very well-placed to create significant value.
