Legacy Iron Ore (ASX: LCY) entered into a binding term sheet with Synergy Plus (ASX: SNR) regarding the sale of its gold and base metal projects. The assets are being acquired at a valuation of $6 million.
The deal is subject conditions precedent including due diligence and all necessary shareholder, board and regulatory approvals including FIRB.
Details of the transaction has Legacy Iron vending the gold assets into Synergy together with a minimum cash consideration via a placement of $1.5 million to acquire a controlling interest in Synergy.
On completion of the sale of the Gold Assets, together with the subscription of a minimum of $1.5m cash via a convertible loan and a share subscription agreement, Legacy Iron or its nominees will hold not less than 87% of the issued capital of Synergy post consolidation of Synergy's capital on a 1:125 basis.
Public Offering and priority offer
On completion of the issue of the Loan Shares, Placement Shares and Acquisition Shares and the consolidation of Synergy’s share capital, Synergy will seek to issue a prospectus to raise up to a further $4,000,000 at an issue price of $0.20 each per Share, with a minimum subscription of $1,500,000 (Public Offering).
Synergy will then seek to apply for re-admission to the Official List of ASX.
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