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News: Tian Poh Resources raises $1.6M, acquiring stake in Mongolian molybdenum-copper project

  1. Tian Poh Resources (ASX:TPO) has raised $1.62 million through a share placement and has secured an exclusive option to acquire a 51% interest in the Zuun Mod Molybdenum-Copper deposit in Mongolia.

    The funds were raised through a placement of 9 million shares priced at $0.18 each to sophisticated and professional investors. Each share includes a free attached option with an exercise price of $0.20 expiring 16th February 2016.

    Zuun Mod has a Measured and Indicated Resource estimate of 218 million tonnes at 0.057% Molybdenum and 0.069% copper.

    It is also located within 100 kilometres from an advanced TPO coal project, offering the potential to generate power from its own coal in the future.

    The company intends to immediately commence a due diligence study leading into a Feasibility
    Study to support the formulation of development plans for the Project.

    Tian Poh has paid an option consideration of US$50,000 plus advancing a non-interest bearing debenture of US$200,000 to Erdene Resource Development Corp (TSE:ERD).

    Upon exercising the option:

    - Tian Poh will pay Erdene a consideration of US$4.8 million over 5 years for a 51% stake in the project and undertaking to invest US$10 million into the project over a period of 6 years. US$1.2 million in cash and shares of the Consideration amount, is payable up until the first anniversary of the closing date;
    - The company may increase its shareholding up to 70% or 90% with additional work commitments into the project;
    - It also has an option to acquire the remaining interest in the project by granting Erdene a Net Smelter Royalty (NSR) of 1% (with an option to buy-out on agreed terms), payable after return of consideration and investments made into the project.

     

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