Fraser Range Metals Group (ASX:FRN) has elected not to proceed with the acquisition to acquire Plumridge Gold Pty Ltd from International Goldfields (ASX: IGS) and the acquisition of Fraser Range Res. Pty Ltd.
Market conditions have changed since the acquisitions were announced, the company said and despite numerous discussions with potential investors and the recently announced positive VTEM results, it had not been successful in raising the required funding.
Both share sale agreements require the company to raise enough capital to enable it to come out of suspension and begin trading its shares on the ASX.
As a result, the company will not be able to satisfy the terms and conditions under the Share Sale Agreement so a Deed of Termination was executed today.
As the acquisition of Fraser Range Res. was conditional on the Plumridge Gold transaction proceeding, the Share Sale Agreement with Fraser Range Res. is no longer valid.
New exploration license
In anticipation of the conclusion of the Plumridge and Fraser Range deals, Fraser applied for a large tenement which adjoins the Plumridge Gold tenements to the east.
The area amounts to approximately 594km2. Exploration on the tenement is estimated to begin as soon as the license is granted.
The company remains funded by way of the convertible loan facilities, details of which were recently announced to the market.
The application has since been approved by the Department of Mines and Petroleum and the company expects formal granting of the tenement sometime later in the year.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.