LCL Resources (ASX:LCL) is advising investors at the shareholder meeting on 17 February to approve the transaction with Tiger Gold Corporation for the divestment of its Colombian projects, being the Andes Gold Project and the Quinchia Project.
If shareholders approve the transaction at the meeting, LCL will satisfy the remaining condition precedent to Tiger Gold’s obligation to make an initial payment.
In December last year, LCL Resources executed a binding share purchase option agreement with Tiger Gold Corporation for the divestment of its Colombian projects.
Earlier this week on 10 February, the company requested a halt while it clarified certain matters relating to the sale of the Colombian assets. On 9 and 10 February LCL says two conditions precedent were met or waived.
Specifically, the requirement for Tiger Gold to receive a legal opinion on the good standing and validity of the underlying mineral claims has been met. The requirement for LCL to deliver audited financial statements for the Colombian subsidiaries for the year ending 31 December 2024, was waived as a condition precedent.
However, LCL is still obligated to deliver these audited financial statements to Tiger Gold and expects to do this in late February or early March 2025.
The company says the only remaining condition precedent to Tiger Gold’s obligation to make the initial payment under the transaction of $1 million is receiving a formal notice from LCL confirming that all required approvals for the transaction have been obtained.
As such, shareholders on 17 February are being asked to approve the transaction.
Write to Adam Orlando at Mining.com.au
Images: LCL
