Under the terms of agreement, Viculus will issue of one Viculus share for every Euro share to acquire Euro Petroleum, which holds the contractual rights to acquire 70% of Lanka Graphite.
Lanka Graphite holds the graphite licenses and has made another four exploration license applications.
In order to acquire all Euro shares from Euro’s shareholders, Viculus will make an off market takeover bid while the transaction is subject to Viculus share holders approval.
One director from Euro will also join the Viculus board of directors to provide further skills and experience to the Viculus Board.
Upon completion of the proposed acquisition of Euro, Viculus will change its name to Lanka Graphite Ltd.
To fund further business and mining exploration and evaluation objectives, Viculus will perform a capital raising to raise up to $5m by issuing 25 million shares priced at $0.20 each.
