Rift Valley Resources (ASX:RVY) has signed a sale and purchase agreement to acquire the Mtemi Group of Companies, which have a gold, copper and uranium exploration tenements in Tanzania.
Mtemi also owns a drill rig, trucks and other equipment which will be beneficial to Rift’s existing operations in Tanzania.
In conjunction with the acquisition, the company has raised $4 million through a placement of shares priced at $0.025 each to institutional and sophisticated investors.
Proceeds will go towards further drilling and resource development at the company’s projects in Tanzania.
Funds will also be used for drilling, trenching, stream sediment sampling, acquisition and interpretation of the airborne survey recently undertaken by the Angolan Government at its Ozango project in Angola.
The issue is subject to shareholder approval at a general meeting of shareholders to be called shortly and expected to be held in mid-April 2015.
Cconsideration for the acquisition of Mtemi will be satisfied by the issue of 32 million Rift shares (subject to 12 months escrow) and 42,855,000 unlisted Rift options exercisable at $0.06 and expiring in 3 years.
Mtemi will be invited to appoint a nominee to the board of Rift as a non-executive director for a term of 3 years.
Adding interest, Mtemi has a sophisticated shareholder base of successful Tanzanian and international businessmen who bring with them valuable Tanzanian and general African experience and technical capabilities.
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