Megado acquires European copper project
Australian company Megado Minerals has announced an agreement to acquire an 80% interest in a copper project in northern Spain.
The Iberian copper project includes 12 permits, including at least 12 historic copper mines, covering an area of 956 km2.
Subject to shareholder approval, Megado intends to complete a share swap with the current shareholders of Iberian Copper (ICPL). As consideration, Megado will pay 175-million shares in the company, 175-million Class A performance rights and 175-million Class B performance rights.
The performance rights will be converted into shares on a one-for-one basis subject to the achievement of project related milestones.
Megado directors Anthony Hall and Aaron Bertolatti are noncontrolling shareholders of ICPL.
Meanwhile, to support the acquisition, Megado announced a nonrenounceable rights issue of one share for every two shares at 1.2c to raise up to A$1.53-million.
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