Rum Jungle Resources Limited (ASX:RUM) Announces Acquisition Of 100% Interest In Ammaroo/Barrow Creek Phosphate Discovery
Perth, Jan 12, 2011 AEST (ABN Newswire) - Rum Jungle Resources Ltd (
ASX:RUM) (RUM) is pleased to announce that today it has reached an agreement with Aragon Resources Ltd (ASX:AAG) (Aragon) to purchase all the shares in Territory Phosphate Pty Ltd, a wholly owned subsidiary of Aragon.
TERMS OF AGREEMENT
RUM will issue Aragon with 16,000,000 shares equally ranking in the issued capital of RUM (presently 126,851,852 shares)
RUM will pay Aragon A$1,000,000
Aragon will escrow 50% of its share holding for a minimum one year period
BENEFITS
At completion, this arrangement automatically extinguishes the previous farm-in arrangement whereby RUM had to spend A$5M to earn a maximum 70% interest in the Barrow Creek project recently discovered by RUM.
RUM immediately becomes 100% owner of the mining titles and is free to negotiate at any stage should it wish to introduce any venture capitalists or joint venture partners.
DISCLOSURE
The tenements subject to this agreement were originally acquired in 2006 prior to the formation of RUM, by companies associated with the Managing Director. Consequently two Directors, David Muller and Robert Annells, will benefit by this agreement, relating to the original sale agreement with Aragon, which entitled Muller and Annells to share in a A$1.00 per tonne royalty, which was later reduced to A$0.40 per tonne production royalty, payable by Territory Phosphate Pty Ltd, agreed to prior to any involvement by RUM. The royalties referred to herein apply only to the three exploration licences owned by Territory, namely EL25183, EL25184 and EL25185. Any new Exploration Licences applied for by RUM subsequent to the date of the original acquisition by Aragon are not subject to the royalty agreement.
About Verdant Minerals Ltd
Verdant Minerals Ltd's (ASX:VRM) strategic intent is to create shareholder value through the discovery, development and operation of fertiliser and industrial mineral projects, located in close proximity to existing transport infrastructure, with a primary focus on the Northern Territory of Australia.
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