Calidus Resources Limited completed the acquisition of Blue Spec Project from Beatons Creek Gold Pty.
As of December 1, 2020, Calidus Resources Limited has made the initial AUD 2.5 million payment to Novo to gain a 10% interest in the Blue Spec tenements. As of February 1, 2021, Calidus Resources has completed an AUD 5 million payment which increased its ownership to 25%. As of March 23, 2021, Calidus Resources has paid AUD 7.7 million to Novo Resources. It will also make a cash payment totaling AUD 5 million to Novo Resources by March 31, 2021 and issue 13,333,333 ordinary shares to Novo Resources by April 16, 2021. Calidus will transfer a 100% interest in prospecting license 45/3065, adjacent to Novo Resources' Talga Talga project in the East Pilbara region of Western Australia to Beatons Creek Gold. Calidus Resources Limited proposed to issue 62.5 million shares at an issue price of AUD 0.51 per share to raise AUD 31.875 million from institutional and sophisticated investors via a Placement. Calidus to undertake a Share Purchase Plan also to eligible shareholders to raise a further AUD 5 million on the same terms as the Placement. Funds raised via Placement and Share Purchase Plan will also be used for the acquisition of Blue Spec Project. As of March 25, 2021 Calidus Resources Limited received AUD 12.5 million in share placement. Proceeds will be used to fund the acquisition of the Blue Spec gold project. CAI shareholders meeting will be held on May 19, 2021.
The transaction is conditional upon, consent of the Minister required under the Mining Act, Calidus arranging sufficient finance to pay the consideration, supplementary agreements being executed to assign heritage agreements and existing third-party approvals and signing of road access agreements to facilitate Calidus to transport material to the Warrawoona processing facilities, along with customary regulatory approvals. As of March 23, 2021, the transaction is still subject to the satisfaction of certain conditions precedent including the execution of various deeds of assignment between Novo Resources, Calidus, and relevant third parties, and customary regulatory approvals. CAI Board recommend shareholders to vote in favor of the transaction. The parties are targeting closing the transaction within 60 days of signing the agreement and payment of final consideration by November 30, 2020. As of October 14, 2020, the transaction is expected to close on November 30, 2020. Novo plans to use proceeds from the sale of Blue Spec to aggressively advance expansion of its Beatons Creek deposit as well as explore other near surface targets it holds across the region.
Calidus Resources Limited (ASX:CAI) completed the acquisition of Blue Spec Project from Beatons Creek Gold Pty Ltd on April 1, 2021.