VWM proceeds with acquisition of SEAE

By Romel S. Gurky

ASX-listed firm Victory West Metals Limited (VWM) recently announced it has signed a binding Share Purchase Agreement with the shareholders of South East Asia Energy Resources Pte Ltd (SEAE) to acquire the company for 110 million performance shares, each converting to 1 fully paid ordinary VWM share following commercial shipment of coal by SEAE.

There is also the option of paying in 33 million performance shares, each to acquire 1 share (30c exercise price, 3 year term, vesting upon coal shipment).

To complete the acquisition, VWM will pay $750,000 by not later than 12 months from completion of the agreement and up to a further 220 million shares upon achieving further agreed production and resource performance milestones (coal shipment 2 & 3) and necessary shareholder approvals.

Completion is conditional upon due diligence and regulatory and shareholder approvals.

SEAE is a Singapore company which currently holds an interest in the Penajam East thermal coal project and has identified a number of additional projects for future review.

The acquisition is consistent with VWM?s recently stated business objectives of acquiring and developing resources projects in South East Asia.

Editing by Audy Zandri