- Consolidated Zinc (CZL) enters a binding agreement to acquire all of the shares in Westoz Lithium
- The company will acquire Westoz from Paul Watts and Arnel Mendoza for a total of $740,000 to be paid in cash and shares
- CZL says the acquisition is an “exciting opportunity” as Westoz owns 1400 square kilometres of potentially highly prospective tenements in WA
- The acquisition is subject to certain conditions and is expected to be completed in the current quarter
- Company shares have been up 35 per cent, trading at 2.7 cents
Consolidated Zinc (CZL) has entered a binding share purchase agreement to fully acquire Westoz Lithium.
The agreement was initially announced back in March when CZL executed a conditional non-binding indicative offer to acquire the lithium company for a combination of cash and shares.
With a firm deal now in place, Consolidated Zinc will acquire Westoz Lithium from the vendors, Paul Watts and Arnel Mendoza (current shareholders of Westoz), for a total consideration of $740,000.
Westoz Lithium owns 1400 square kilometres of exploration license applications in the
Pilbara and Gascoyne regions of WA. The tenements are reportedly considered highly prospective for lithium, as well as for rare earth elements (REEs) and base metals.
In a statement today, Consolidated said the acquisition is an “exciting opportunity for the company to diversify further into the battery minerals sector.”
Upon the completion of the acquisition, and subject to CZL receiving shareholder approval at an upcoming annual general meeting, the vendors will be issued 24 million shares at an issue price of 2.5 cents, representing an aggregate value of $600,000.
The company will then pay $90,000 in cash to Paul Watts and $50,000 in cash to Arnel Mendoza.
Before the acquisition can be finalised, Consolidated Zinc needs to complete due diligence work and obtain relevant approvals.
If conditions are satisfied, CZL expects the acquisition will be completed before the end of the current quarter.
Company shares rose 35 per cent to trade at 2.7 cents at 12:36 pm AEST.