Companies:

 

Articles:

 
Mining

Trigg Minerals shareholders vote in favour of Rush Resources and Drummond gold project acquisitions

Go to Imelda Cotton author's page
By Imelda Cotton - 
Trigg Minerals ASX TMG vote Rush Resources Drummond gold project acquisitions Andromeda Metals Queensland
Copied

Shareholders of Trigg Minerals (ASX: TMG) have approved the proposed acquisitions of Rush Resources and the advanced Drummond gold project in Queensland from Andromeda Metals (ASX: ADN).

Trigg confirmed that more than 97% of votes were in favour of the transaction.

Rush holds exclusive rights to purchase Drummond, which is located in the multi-million-ounce Drummond Basin and is prospective for gold and base metals.

The shareholder approval includes the issue of considerations under binding acquisition agreements between Rush shareholders and Andromeda.

Drummond sale

In October last year, Andromeda shareholders were advised that the company had entered into an agreement with Rush for the sale of Drummond in return for approximately $250,000 worth of fully paid ordinary shares in Rush.

The agreement was conditional on Rush listing on the Australian Securities Exchange however the explorer will now become a subsidiary of Trigg via a share sale agreement.

Share consideration

Rather than receiving shares in Rush as consideration for the sale of Drummond, Trigg will issue Andromeda with shares to the value of $250,000; plus another $45,000 in shares to cover reimbursement of costs incurred at the tenements.

Andromeda will also receive a non-refundable upfront payment of $27,000 in cash and a cash refund of $7500 to cover environmental bonds for the project at completion of sale.

The acquisitions remain subject to further conditions precedent including completion of Trigg’s current capital raising by way of a $576,000 placement and $1 million rights issue.

Start of exploration

Earlier this month, Trigg started exploration at Drummond in anticipation of shareholder approval.

The company will be chasing epithermal and intrusion-related gold and silver at existing advanced prospects as well as assessing any greenfield potential.

It has engaged Brisbane-based Global Ore Discovery to review historical data in preparation for a field campaign at the project, which lies 150 kilometres south of Townsville.

Trigg will use funds from the capital raising to define drill targets alongside the “innovative” pilot test work being completed at its flagship Lake Throssell sulphate of potash project in Western Australia.

Lake Throssell was suspended this month while the company assesses the potential for extracting other minerals at its three Western Australian projects.