Proposed disposal of Main Undertaking & Capital Raising
Perth, April 7, 2016 AEST (ABN Newswire) - Taruga Gold Limited (
ASX:TAR) ("Taruga" or the "Company") is pleased to advise it has entered into a conditional Share Sale Agreement ("SSA") to sell 100% of its interest in International Goldfields (Bermuda) Limited ("IG Bermuda") to AIM-listed Kodal Minerals Plc ("Kodal") to be settled by the issuance of up to 1,025,000,000 Kodal shares ("Consideration Shares")(the "Transaction").
Kodal is a mining and exploration company currently operating in Norway. It holds extraction licences over the Kodal phosphate and iron deposit in southern Norway and is exploring the Grimeli Project in western Norway.
Key Terms of the Transaction
- Kodal to acquire 100% interest in IG Bermuda, for scrip consideration of A$770,538
- Subject to shareholder approval, Taruga to undertake an in-specie distribution of the Consideration Shares to eligible shareholders
- Managing Director of Taruga, Bernard Aylward, to become CEO of Kodal
Commenting on the Transaction with Kodal Minerals, Managing Director Bernard Aylward stated:
"The Board of Taruga has been continuously reviewing various options to unlock value for our shareholders. While there has been renewed interest in junior exploration companies on the ASX, we feel that AIM will provide the necessary capital required to fully realise the potential of Taruga's projects in Cote d'Ivoire and Mali.
To view tables and figures, please visit:
http://abnnewswire.net/lnk/2L3Z3941
Contact
Taruga Gold Ltd
T: +61-8-9486-4036
E: admin@tarugagold.com.au
WWW: www.tarugagold.com.au
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