Wireless technology provider Connected IO (ASX:CIO) is making its foray into uranium and gold exploration with the acquisition of projects in Namibia and Western Australia.
The company has inked binding agreements to acquire Namibia U308, which owns an 80% interest in one granted exclusive prospecting licence (EPL) and three EPL applications in Namibia.
The EPLs cover the Etango North East, Swakomund, Welwitschia Plain and Rossing Northeast projects.
In Western Australia, Connected IO is acquiring a 100% interest in the Mt Genoa, Civilisation Bore, and Pallingup gold projects from Mining Equities.
These acquisitions mark a change in direction for the company and means it will have to re-comply with chapters one and two of the ASX listing rules before it can be reinstated to trading on the exchange.
Connected IO was forced into a suspension by the ASX in July 2022 after the ASX determined that the company’s operations were not adequate to warrant the continued quotation of its securities and finding it in breach of Listing Rule 12.1.
The company says the timeframe for completing the proposed deal is “especially limited” because it is otherwise facing automatic delisting from the ASX due to its continued period of suspension.
Under the ASX rules, Connected IO may be delisted if it has not been reinstated by 27 July 2024. However, the Australian bourse may agree to a short extension of up to three months if the company can demonstrate that it is in the final stages of implementing a transaction that will lead to the resumption of trading in its securities within a reasonable period.
The company will undertake a 20-to-one share consolidation and seek to raise up to $5.2 million via an entitlement offer and placement at $0.20 per share.
The cash raised will be used to complete the acquisitions and conduct exploration over the projects.
Connected IO will also undergo a board restructure on completion of the acquisitions, with Warrick Clent and Barend Morkel stepping into the roles of Managing Director and non-executive director, respectively.
Adam Sierakowski will continue as non-executive Chairman, while Davide Bosio and Dougal Ferguson will resign as directors.
Connected IO anticipates it will be reinstated to trading under a new name and ticker code by 6 September 2024.
Write to Angela East at Mining.com.au
Images: Connected IO and Stock
