Corp. has announced it has entered into a conditional share sale and purchase agreement, pursuant to which Nickel Mines Limited has agreed to acquire 100% of the Company’s interest in the Cyclops Nickel-Cobalt Project.
Pursuant to the agreement and subject to approval of the transaction by the shareholders of Bolt, the society and its subsidiaries will receive cash payments in the aggregate amount of US$6,020,000 in exchange for the Company’s 65% interest in the Cyclops project, a 5,000 hectareproject located in Papua province, Indonesia. If the shareholders of the Company do not approve the transaction, Nickel Mines will have the right to acquire a 45% interest in the Cyclops Project for total consideration to the Company and its subsidiaries of US$750,000 and additional consideration to underlying Cyclops Project owners of US$980,000.
Mr. Ranjeet Sundher, President and Chief Executive Officer, commented “We believe the opportunity to take the Company in a new direction with a strong balance sheet is the correct way to provide long term value for our shareholders. The transaction value is an approximate 375% premium to the Company’s current market capitalization, is overwhelmingly endorsed by management and directors and we anticipate it will also be strongly supported by our shareholders. We look forward to expediting the closing of the Transaction and then providing shareholder updates on the future direction of the Company.”
Completion of the transaction is subject to customary due diligence, regulatory and shareholder approval and the successful extension of the Production Operation IUP mining permit for the Cyclops Project. A finder’s fee is payable in connection with the transaction.