MetalsTech (ASX:MTC) has received a non-binding offer from Canadian private equity fund TransMetal Fund LP (TMF) to acquire the Sturec Gold Project in Slovakia.
TMF is seeking to acquire all of the issued capital of MetalTech’s wholly owned subsidiary Ortac Resources , which holds 100% ownership of the Sturec project, subject to proceeding definitive agreements, as well as any required regulatory approvals including MetalsTech shareholder approval.
Key terms of the acquisition include TMF paying a proposed consideration of US$36 million cash on completion, US$20 million cash payable upon receipt of an underground mining activity permit — which is expected to be granted in Q1 2024.
MetalsTech, which has a market capitalisation of $45.34 million, notes a further deferred US$25 million lump sum cash payment will be made in lieu of a retained royalty, following the restart of commercial production at Sturec.
The total offer equates to US$81 million ($120.7 million).
MetalsTech is currently considering all of its options and prudently navigating the very ‘strong’ interest that has been generated from the strategic process being undertaken by Minmetals Securities.
Subsequent to today’s (15 January 2024) announcement, MetalsTech’s share price had climbed 18.75% to $0.285 as of 10.30am AEDT.
TMF is a private equity fund focused on global natural resource opportunities. The company is headquartered in Toronto, Canada and currently manages US$500 million in total assets, including 2 ‘large-scale’ polymetallic mines in Canada.
MetalsTech is an emerging gold and lithium explorer focused on its 2 assets in Slovakia and Quebec, Canada.
Write to Aaliyah Rogan at Mining.com.au
Images: MetalsTech
