09:59:03 EDT Thu 28 Mar 2024
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or Name
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Aranjin Resources Ltd
Symbol ARJN
Shares Issued 209,125,278
Close 2020-07-21 C$ 0.045
Market Cap C$ 9,410,638
Recent Sedar Documents

Aranjin to sell Brazilian subsidiary Five Star for $4M

2020-07-21 17:48 ET - News Release

Mr. Matthew Wood reports

ARANJIN RESOURCES ANNOUNCES SALE OF BRAZIL SUBSIDIARY

Aranjin Resources Ltd. has concluded an agreement to divest its Brazilian subsidiary, Five Star Mineracao Ltda, to a private investor group for future consideration.

As noted in company filings over the past 18 months, investor appetite for investment in the diamond mining sector has been very low. The company has been unable to secure investors to support the development of the company's Brazilian diamond assets, and this situation has been further exacerbated by the COVID-19 public health crisis.

The company is pleased to announce the sale to a private investor with the expectation that it can recoup some investment through the contingent consideration. It has transferred all related assets and liabilities to the purchaser.

The total consideration payable by the purchaser is composed of a cash payment of up to $4-million plus a 1-per-cent net smelter royalty on any production at the Catalao project, based on future sales locally or exported.

The cash payment portion of the purchase price will be due when the Catalao project becomes operational, per below

  • $500,000 within six months after start of commercial production of alterated zone;
  • $500,000 within 12 months after start of commercial production of alterated zone;
  • $1-million within six months after start of commercial production of Fresh Rock;
  • $2-million within 12 months after start of commercial production of Fresh Rock.

Matthew Wood, chairman of Aranjin Resources, stated: "We are very pleased to be able to divest our diamond assets whilst maintaining upside to potential development scenarios in the future. Aranjin Resources will now be exclusively focused on discovering copper deposits in the world-class and underexplored copper provinces of Mongolia. Exploration programs have commenced, and additional acquisition opportunities are being assessed."

Correction of finders' fees

Further to the announcement on July 3, 2020, the company wishes to provide a correction to the cash compensation amount paid to eligible finders in connection with the closing of the financing, as the company paid $38,761.25 in cash compensation as opposed to $38,860 as announced in its July 3, 2020, news release.

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