The acquisition is subject to the completion of satisfactory due diligence and Strategic Minerals agreeing a sale and purchase agreement (SPA) with the shareholders of Ebony.
Under the SPA, SML will acquire 100% of the issued share capital of Ebony for a consideration of ten million pounds sterling to be satisfied by the issue of 100 million new fully-paid ordinary shares in SML to Ebony at an issue price of ten pence per share.
The shareholders of Ebony will receive a further consideration of 50 million new ordinary SML shares subject to the confirmation of an Australasian Joint Ore Reserves Committee Code indicated resource of a minimum of 200 million tonnes of iron ore by Ebony.
SML CEO Pat Griffiths said this acquisition is a positive step towards the development of SML into a well balanced mining and exploration company with short term positive cash flow providing additional security to shareholders.
