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Pegasus Metals adds commodity diversification with acquisition in Burkina Faso

Capital raising to fund exploration at Dablo and Mt Mulcahy Copper-Zinc project.
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Sophisticated investors support capital raising to fund acquisition and exploration

Pegasus Metals Ltd’s (ASX:PUN) proposed acquisition of Scorpion Minerals Limited provides the company with an opportunity to secure a 70% joint venture interest in a polymetallic deposit in Burkina Faso.

Dablo has the potential for palladium‐platinum‐gold‐nickel-copper mineralisation.

The Dablo project consists of a large land package comprising four tenements for a total of 981 square metres with a strike length of 6 kilometres identified within an anomalous trend of more than 35 kilometres.

Issue of shares and options as consideration

Under the terms of the acquisition agreement Pegasus will acquire all of the issued capital of Scorpion for $360,000 via the issue of a total of 12 million shares at an implied price of $0.03 per share.

Consideration also includes the issue of a total of 45 million unlisted options in Pegasus in three tranches with exercise prices ranging between $0.03 and $0.10 per option.

Sophisticated investors to participate in $600,000 capital raising

The company will also assume the outstanding loan obligation of Scorpion under a $500,000 loan facility which will include a payment of $250,000 from a capital raising.

Pegasus will undertake a placement to sophisticated investors of 20,000 shares at $0.03 per share to raise $600,000 before costs associated with the issue.

Capital raising will fund exploration at the Dablo and Mt Mulcahy Copper projects

The funds raised will be applied to progress the proposed acquisition and exploration of the Dablo project.

It will also assist in providing financing for exploration activities at the company’s Mt Mulcahy Copper Project located in the Murchison region of Western Australia.

The project hosts the Mt Mulcahy volcanogenic massive sulphide copper-zinc deposit, which has a Measured, Indicated and Inferred Resource of 647,000 tonnes at 2.4% copper, 1.8% zinc and 20 g/t silver.

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Pegasus Metals Timeline

November 18 2016
August 20 2014

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