American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

Proposed Agreement to Settle Cosmo Gold Loan

by admin June 17, 2024
June 17, 2024
Proposed Agreement to Settle Cosmo Gold Loan

Adelong Gold Limited (ASX:ADG) (Adelong Gold or the Company) is pleased to announce that it has entered into a non-binding Memorandum of Understanding (MOU) with Cosmo Gold Limited (Cosmo) and Sarama Resources Ltd. (ASX:SRR) (Sarama) to accept fully paid ordinary shares and options in Sarama in full settlement of the loan obligations owed by Cosmo to Adelong Gold.

HIGHLIGHTS

  • Adelong Gold agrees to proposed settlement of outstanding loan to Cosmo Gold
  • Non-Binding Agreement with both Sarama Resources Ltd. and Cosmo Gold Ltd.
  • Agreement reached as part of a proposed transaction between Adelong Gold and those companies

Adelong Gold Chairman Ian Hastings commented:

“Adelong Gold is pleased to reach in principal agreement to settle the outstanding loan owed to it by Cosmo by agreeing to accept shares and options in Sarama Resources Ltd, with whom Cosmo is pursuing a transaction to transfer the Cosmo project to Sarama. Whilst the proposed transaction is subject to numerous Conditions Precedent and approvals, Adelong Gold is pleased to support it. Together with the initial consideration received by Adelong Gold when it sold the project to Cosmo, Adelong Gold is pleased to now potentially recover much of its Cosmo loan.”

Background

On 27 August 2020, the Company announced its intention to sell its Cosmo Newbery gold project to Cosmo, its then wholly owned subsidiary, and for Cosmo to undertake an initial public offering (IPO) and seek admission to the ASX. As consideration for the transfer of the Cosmo project, Cosmo would pay $750,000 to Adelong for costs incurred in relation to the Cosmo project (of which $500,000 has been received by the Company).

On 25 June 2021, Adelong Gold announced that Cosmo had withdrawn the IPO following delays associated with obtaining the required ministerial approvals of a mining permit for part of the Cosmo project caused by the then-recent Western Australian (WA) election. The IPO initially received commitments in excess of the $5 million target raising. However, the continued delays in receiving the mining permit from the WA government resulted in the withdrawal of the IPO.

The Company has continued to advance loan funds to Cosmo for its operations pursuant to a secured loan arrangement, where the amount presently owed by Cosmo to Adelong Gold is $1,538,957.

Proposed settlement of Loan

The Company has executed a non-binding MOU with both Sarama and Cosmo, pursuant to which it is intended that Cosmo will sell 80% of its interest in the project to Sarama and Sarama taking on certain funding obligations for the project. The transaction is subject to numerous Conditions Precedents (as set out in the MOU and below), including full settlement of the loan owed by Cosmo to the Company. The loan is proposed to be fully settled in consideration of the Company receiving 25 million fully paid ordinary shares in Sarama (SRR Shares) and 7.5 million options to acquire shares in Sarama exercisable within 2 years at $0.05 per option (SRR Options) issued to Cosmo under the transaction. Based on the closing SRR share price of $0.022 on 14 June 2024, the SSR Shares to be transferred to the Company as part settlement of the loan to Cosmo are valued at $550,000.

Click here for the full ASX Release

This post appeared first on investingnews.com

0
FacebookTwitterGoogle +Pinterest
previous post
Sarama Signs MOU Over West Australian Gold Project
next post
GTI Energy Ltd (ASX: GTR) – Trading Halt

Related Posts

Senegal Halts Mining Along Falémé River to Combat...

August 30, 2024

Top 4 S&P 500 stocks to buy Polymarket...

April 5, 2025

Top S&P 500 stocks to watch: WMT, NVDA,...

February 23, 2025

Top 5 NASDAQ Pharma Stocks of 2024

July 18, 2024

What next for the Dave stock price after...

June 29, 2025

SMH, SOXX, FTXL, SOXL ETFs crash as chip...

April 14, 2025

Xiaomi stock price hits record high as Apple...

June 27, 2025

Here’s why Sui price is in an ‘unstoppable’...

September 18, 2024

Polkadot price prediction: here’s why DOT may surge...

February 20, 2025

Is ServiceNow stock a buy or a sell...

April 18, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • How Donald Trump’s immigration crackdown may tank the labor market

      August 4, 2025
    • Trump’s tariff threat looms over India’s Russian oil deals

      August 4, 2025
    • Trump moves nuclear submarines near Russia: what triggered the move and what’s ahead

      August 3, 2025
    • BOE rate cuts offer little relief as UK households face mounting financial strain

      August 3, 2025
    • Retail investors shift focus to Europe as US valuations stretch

      August 3, 2025

    Categories

    • Business (3,583)
    • Investing (2,703)
    • Latest News (2,031)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved