Broome signs LOI for acquiring Minahasa Gold property
Friday, February 8 2013 - 03:30 AM WIB
TSX-listed Broome Capital Inc. announced that it has entered into a binding letter of intent (LOI) to complete transaction with three private Indonesian holding companies: PT Forel Mega Mineral, PT Anak Indonesia Mining and PT For El Shadai - collectively under "Minahasa Group" - by acquiring all of the issued and outstanding securities of the Minahasa Group from their shareholders.
The three companies in Minahasa Group collectively have the rights to acquire a 100% interest in the Minahasa Gold Project located in Northern Sulawesi.
The company said that upon completion of the transaction, the combined entity will be listed as a Tier 2 mining issuer on the TSX Venture Exchange.
The company currently has 11,400,000 common shares issued and outstanding, as well as 840,000 Incentive Stock options and 300,000 brokers warrants to acquire common shares at $0.10 per share.
It is currently anticipated that 12,500,000 common shares will be issued at a deemed price of $0.20 per security for an aggregate purchase price of $2.5 million.
Following the completion of the Transaction, the issuance of 187,500 shares to Evans & Evans as a finder's fee, the issuance of 125,000 shares to Mr. In Suk Chung as a finder's fee, and the issuance of 300,000 shares to Canaccord Genuity as a Corporate Finance Fee approximately 34,512,000 common shares of the Resulting Issuer would be issued and outstanding, said the company.
Broome Capital shareholders will hold common shares representing approximately 33.03% of the outstanding common shares of the Resulting Issuer following the completion of the Transaction and the concurrent financing on an undiluted basis.
The Minahasa Group comprising three companies holds 100% interest in seven (7) exploration permits in the Minahasa region of Northern Sulawesi, Indonesia.
El Shadai and Forel each hold 2 of the permits, with the final 3 permits held by Anak Indonesia Mining.
The current shareholders of the Minahasa Group related companies are: Soebali Sudjie, Setiawan Sudjie, Tjiebeng Sukajali, Vigielia Oral Christany Lumoindong, and PT. Multi Mining Utama (MMU) a private Indonesian mining company.
Editing by Adianto P. Simamora