Australian exploration company Ram Resources has inked an agreement with Regency Mines to acquire 70% stake in Fraser Range project in Western Australia in an all-stake deal.
With this agreement, Ram will increase its ownership in the mine to 80%.
As per the terms of the agreement, Ram will issue 19.9% shares to Regency alongside 340-million class A performance shares to be convertible to Ram shares upon the delineation of a joint ore reserves committee-compliant inferred resource of 300 000 ounces gold equivalent.
Additional 340-million class B performance shares to be convertible to Ram shares will be issued by Ram if a decision is made to mine on the tenements.
Fraser Range project comprises three exploration licences, covering 271 km2 with licenses covering about 50km of the Yilgarn craton margin.
The agreement is subject to few conditions including regulatory and shareholder approvals, and Ram raising a minimum of A$1.5m ($1.37m).