Join our daily newsletter At The Bell to receive exclusive market insights
- Mandrake Resources (MAN) shares have taken a hit after the company extended its due diligence to acquire the Delfin copper project in Chile for the second time
- MAN secured a one-month extension to facilitate a potential renegotiation of the terms sheet, believing the new terms would de-risk the transaction and will come at no cost
- The initial due diligence period was due to last 12 weeks but the company extended it at the end of June for two months and has now extended it again
- Mandrake attributed the June extension to “ensure a clear path to immediate exploration activities upon acquisition”
- Shares have fallen 15.4 per cent today to close at 4.4 cents
Mandrake Resources (MAN) shares have taken a hit after the company extended its due diligence to acquire the Delfin copper project in Chile for the second time.
The company secured a one-month extension to facilitate a potential renegotiation of the terms sheet, which may result in the acquisition payment being linked to project access and drilling.
It said the new terms would de-risk the transaction and will come at no cost.
The initial due diligence period was due to last 12 weeks but the company extended it at the end of June for two months and has now extended it again.
The company attributed the June extension to “ensure a clear path to immediate exploration activities upon acquisition.”
Mandrake secured the binding term sheet back in March to acquire 100 per cent of Atacamoz, which has the option to acquire the project through its subsidiary.
The company believes in the depth potential of the Delfin project, with historical drilling being shallower than the average penetration depth.
Shares fell 15.4 per cent today to close at 4.4 cents each.
