- Gladiator Resources (GLA) enters a binding memorandum of understanding (MOU) to acquire Tanzanian company Zeus Resources
- Zeus holds more than 1170 square kilometres of tenements in Tanzania, which are highly prospective for gold and uranium
- Consideration for the acquisition is 30 million fully paid ordinary shares and the completion of due diligence within 30 days
- To help fund exploration of the tenements, Gladiator intends to raise $1 million from sophisticated and high net worth investors
- Gladiator is up 20 per cent on the market with shares trading at 1.8 cents at 11:48 am AEST
Gladiator Resources (GLA) has entered a binding memorandum of understanding (MOU) to acquire Tanzanian company (T) Zeus Resources. (The company is a completely different entity to the ASX-listed Zeus Resources.)
Under the MOU, Gladiator will be acquiring 99 per cent of Zeus which holds over 1170 square kilometres of highly prospective exploration tenements in Tanzania.
The tenements are prospective for gold and uranium and have been previously held by Western Metals, Uranium Resources, Uranex and Mantra Resources.
Consideration for the acquisition is 30 million fully paid ordinary shares and the completion of due diligence within 30 days.
To help fund exploration of the tenements, Gladiator intends to raise $1 million from sophisticated and high net worth investors.
Shares will be priced at 1.25 cents which represents a 25 per cent discount to the 15-day volume-weighted average price.
Chairman Ian Hastings commented on the acquisition.
“This transaction represents an opportunity to acquire well known and well documented uranium tenements which are also prospective for gold,” Mr Hastings said.
“All three prospects have the potential of being transformative and Gladiator believes it has secured some of the best uranium ground in East Africa which may deliver shareholders great value over time.”
Gladiator is up 20 per cent on the market with shares trading at 1.8 cents at 11:48 am AEST.