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- Boadicea Resources (BOA) will sell nine exploration licences in Western Australia over to IGO Newsearch
- These licences are located in the Fraser Range and are prospective for nickel and copper
- All up, Boadicea will net $57 million from the sale across a mixture of cash and share payments
- However, before the sale can begin, Boadicea will need to seek shareholder approval at a general meeting scheduled for October
- Boadicea is up a healthy 22.7 per cent and shares are currently trading for 27 cents each
Boadicea Resources (BOA) will sell nine exploration licences in Western Australia over to IGO Newsearch.
These licences are located in the Fraser Range, dubbed Symons Hill, Giles, White Knight, Transline North, Transline South, Transline West 1, Transline West 2, South Plumridge, and Giles South. The licences are prospective for nickel and copper.
All up, Boadicea will net $57 million from the sale, consisting of an upfront non-refundable cash consideration of $5.5 million from IGO. In addition, the seller will pay $1.5 million to subscribe for 6.25 million shares in Boadicea.
Shares will be priced at 24 cents each — a 12 per cent premium to the 60-day volume-weighted average price of BOA shares.
When the cash consideration and subscription have been paid, Boadicea will grant Newsearch a five-year exploration licence.
Further, Newsearch can nominate a Non-Executive Director to Boadicea’s board at no additional cost.
Finally, once Newsearch has outlined a JORC resource, Boadicea will sell and transfer the exploration licences to Newsearch for $50 million in cash and Newsearch will grant a 0.75 per cent net smelter royalty on all revenue it derives from the tenements.
However, before the sale can begin, Boadicea will need to seek shareholder approval at the general meeting scheduled for October.
“The agreement with IGO/Newsearch provides a substantial cash injection and a unique opportunity to leverage the exploration skills of Newsearch within the Fraser Range to explore for nickel sulphide mineralisation, allowing upside participation from any discovery,” Boadicea’s Managing Director, Jon Reynolds, explained.
Boadicea is up a healthy 22.7 per cent and shares are trading for 27 cents each at 11:04 am AEST.
