Zak Mir talks to Ippolito Cattaneo, CEO of Ajax Resources, as the natural resources investment company announces it has entered into a binding preliminary agreement to exchange its Puna Metals portfolio, including the Eureka Project, for the Rachaite Prospect and El Salto Project in Argentina, with no immediate cash consideration.
This strategic move aims to consolidate Ajax’s land position in a prospective copper-silver district, immediately adjoining its flagship Macacha Copper-Silver Project with the El Salto acquisition, and provides an alternative route to acquire the Rachaite polymetallic project.
The transaction is subject to a 90-day mutual due diligence period and a 120-day exclusivity period, with the final structure to be determined during due diligence.
Highlights
· Binding preliminary agreement executed with MMSA in respect of the proposed acquisition of the Rachaite/Chocaya and El Salto mining projects.
· 90-day mutual due diligence period covering technical, legal, environmental, corporate, financial and commercial matters.
· 120-day binding exclusivity period, extendable by mutual agreement.
· El Salto is located immediately adjacent to Ajax’s flagship Macacha Copper-Silver Project and would materially strengthen the Company’s strategic land position, providing the opportunity to evaluate the broader geological potential of the district.
· Rachaite/Chocaya comprises the Rachaite Prospect and the Mina Chocaya exploration licence in Jujuy Province and has previously been announced by the Company as a highly prospective polymetallic exploration project.
· The Company is evaluating the optimal transaction structure, including whether the consideration will entail the transfer of the shares of Puna or, alternatively, the transfer of the underlying mining rights comprising the Puna portfolio, with the final structure to be determined during the due diligence process and reflected in the definitive transaction documentation.
· The Proposed Transaction would provide an alternative mechanism to complete the previously announced acquisition of Rachaite while simultaneously acquiring El Salto.
· The Proposed Transaction involves no immediate cash consideration, allowing the parties to complete a reciprocal exchange of mining assets while preserving the Company’s capital for exploration, resource definition and project advancement.
· Completion of the Proposed Transaction remains subject to the satisfactory completion of due diligence, execution of definitive documentation and satisfaction of customary closing conditions.
Ippolito Ingo Cattaneo, Chief Executive Officer of Ajax Resources Plc, commented:
“Since acquiring the Eureka Project and the adjoining La Escondida licences for aggregate consideration of US$250,000, Ajax has secured the environmental approvals required to commence exploration, become the first company in the project’s history to drill the property following more than 400 years of historic mining activity, expanded the licence package through the acquisition of the La Escondida 1 and La Escondida 2 exploration licences and commenced the permitting process for a proposed alluvial gold operation. These achievements have materially advanced Eureka and created the opportunity to consider how the value generated by the project can best be redeployed across the Company’s wider portfolio.
The Proposed Transaction would complete our previously announced acquisition of the Rachaite Prospect while expanding our flagship Macacha Copper-Silver Project through the acquisition of the immediately adjoining El Salto Project. We believe this would create a larger and more strategically coherent exploration position in north-west Argentina, providing the opportunity to evaluate the broader geological potential of the Macacha district.
The Proposed Transaction involves no immediate cash consideration, preserving the Company’s capital for exploration and project advancement. Our objective is to concentrate exploration expenditure on larger, district-scale opportunities that are more advanced and have greater near-term production potential. We look forward to working with Madero Minerals to complete our due diligence and negotiate the definitive transaction documentation.”
For further information:
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Ajax Resources Plc Ippolito Ingo Cattaneo, Chief Executive Officer |
Tel: + 44 (0) 208 146 6345 |
