To facilitate closing, the Company’s shareholders approved the reduction in the purchase price on November 23, 2015.
The Joint Venture is comprised of the extensive Charley Creek rare earth (REE) project and a number of prospective uranium and REE properties in the Northern Territory of Australia. The Company’s interest in the Joint Venture was held in its wholly owned subsidiary, Panconoz Pty. Ltd.
EMR is a private Australian-based company which is 100%-owned by EMMCO Mining Sdn Bhd (EMMCO), a private Malaysian company beneficially held by a consortium of South East Asian investors.
For its interest, Pancon received cash of AUD $1,300,000, of which the final payment of AUD $850,000 was received on closing, and retained a one percent (1%) gross overriding royalty (GOR) on sales of all production from 100% of the property. Pancon has received conditional TSX Venture (TSXV) approval for the transaction with final TSXV approval pending.
Pancon CEO and president Rick Mark said: "We would like to thank our shareholders for their support in ratifying the deal to sell our interest in the Joint Venture with Crossland.
"We are hopeful that EMR will move aggressively to put the Charley Creek project into production, thus beginning the benefit of the 1% GOR on sales of all production. The Board will now set upon the task of finding a strong, financeable business opportunity with a view of enhancing shareholder value.
