- Sinetech (STC) is set to purchase a series of high-purity kaolin projects through a buyout of their holder HPAA
- The company has signed a share sale agreement to purchase HPAA shares, but the deal is still subject to all necessary regulatory and shareholder approvals
- HPAA owns four granted tenements and one tenement application, which together include three kaolin and one silica exploration projects
- For the purchase, Sinetech is looking to raise up $5 million through a public offer
- The company will offer 200 million shares at an issue price of 2 cents per share
- On the market, Sinetech last traded for 0.3 cents in March 2019
Sinetech (STC) is purchasing a series of high-purity kaolin projects through a buyout of their holder HPAA.
The company has signed a share sale agreement to purchase all HPAA shares. However, the deal is still subject to all necessary regulatory and shareholder approvals.
HPAA owns four granted tenements and one tenement application, which together include four exploration projects, Tampu, Wiltshire, Kalannie and Bonnie.
All four projects are prospective for high-grade, low impurity kaoline and silica and are located around WA.
Tampu is found 265 kilometres north-east of Perth, Wiltshire is located 90 kilometres from Geraldton, Kalannie is located 210 kilometres north0east of Perth and Bonnie Rock is located 70 kilometres south of Tampu.
Notably, very high purity and high brightness kaolin has been found at the Tampu Kaolin Project.
“The known mineralised area at Tampu is contained on two freehold farming properties that are, for the most part, fully cleared of vegetation and intermittently cropped,” the company explained.
“Agreements are in place with the two property owners for the purposes of exploration drilling and sub-surface rights at Tampu,” it added.
To fund the purchase, Sinetech is looking to raise up $5 million through a public offer.
The company will offer 200 million shares at an issue price of 2 cents per share. Funds will go towards the purchase and exploring the projects.
If the deal is successful, Sinetech will change its name to Corella Resources.
On the market, Sinetech last traded for 0.3 cents in March 2019.