Pursuant to the Acquisition, Komet Mali became a wholly owned subsidiary of Roscan Mali SARL, a wholly owned subsidiary of Roscan
Roscan Gold Corporation (“Roscan” or the “Company”; TSXV: ROS; FSE:2OJ; OTC:RCGCF) is pleased to announce the completion of its previously announced acquisition of all of the issued and outstanding shares of Komet Mali SARL (“Komet Mali”) from Komet Resources Inc. (“Komet”; TSXV:KMT) pursuant to a share purchase agreement dated June 15, 2020, among Roscan, Komet and Komet Mali (the “Acquisition”).
Komet Mali owns the Dabia South Project, located in Dabia Sud, Mali, comprising 35km2 of concessions with promising gold exploration potential and located adjacent to the Company’s property in Kandiole, Mali. Pursuant to the Acquisition, Komet Mali became a wholly owned subsidiary of Roscan Mali SARL, a wholly owned subsidiary of Roscan.
President and CEO Nana Sangmuah stated, “We are very excited about this acquisition that strengthens our discovery potential by adding key exploration targets on a major Regional Trend. One of these targets has a shallow historical estimate which extends to 80m depth. Our exploration Team on the ground are finalizing drill campaigns on some of these targets, which will be incorporated as part of our expanded 45,000 km 2020 work program. We now have approximately 20km of a structural corridor consolidated which sets the stage for systematic exploration to unlock value on the entire belt.”
The total consideration for the Acquisition amounted to an aggregate value of CAD$3.2 million, comprised of:
- the payment by Roscan of CAD$1.6 million in cash; and
- the issuance by Roscan of an aggregate of 4,060,336 common shares of the Company (“Shares”, and each, a “Share”), each such Share having a deemed issuance value of CAD$0.394, representing the 5-day volume weighted average price of the Shares on the TSX Venture Exchange as of the trading day prior to the closing date of the Acquisition.
The Shares issued pursuant to the Acquisition are subject to a voluntary hold period of 6 months after the closing date. Komet has also entered into a voting trust agreement with Roscan pursuant to which it has agreed to vote the issued Shares in favour of management’s recommendations. The Acquisition constitutes an arm’s-length transaction and no finder’s fees were paid in connection with the Acquisition.
For further information on the Acquisition, please see the press releases of the Company dated May 11, 2020, and June 17, 2020.
Source: Company Press Release