Ubique Minerals Limited has executed a share purchase agreement to acquire shares in Resource 500 V Limited.
Resource 500 is an Irish company with six mineral exploration licenses and applications for two more licenses in the Otavi Mountain Land.
The licenses broadly cover similar geology to that which hosts the most prolific base metal mines in the history of Namibia.
Ubique Minerals Limited intends to purchase up to 1,752 shares of Resource 500’s 95%-owned subsidiary, Resource 500 V Limited.
Before the proposed acquisition, Ubique owned 533 shares in R500; after the proposed acquisition, it will own a minimum of 99.66%.
As of 26th August 2024, 99.66% of the sellers had signed the binding share purchase agreement, and closing is expected on or before 20th September 2024.
Ubique will issue three unsecured convertible debentures, totalling a principal amount of C$1.5 million and bearing interest at 6% annually, payable in cash.
The debentures are C$350,000 at a conversion price of $0.10, C$507,143 at a conversion price of $0.15, and C$642,857 at a conversion price of $0.30.
If all the debentures are converted as above, Ubique will issue 10,648,096 common shares, representing an 11.26% increase in Ubique’s outstanding shares, as presently constituted.
The debentures will mature 36 months from the closing of the proposed acquisition.
Unless previously converted at the holder’s option, it will automatically convert into common shares of Ubique upon maturity.
Resource 500 has undertaken preliminary-level exploration surveys over their EPLs and located several anomalous regions by remote sensing.
The company plans to undertake geochemical surveys as the next stage of exploration.
Most of the targets identified are in the EPLs covering the southern fold belt running through the area hosting the Kombat and adjacent mines.
Recent advances in geochemical methodology enable greater depth penetration and better discrimination of anomalies.
