- Uranium miner Havilah Resources (HAV) has entered into a binding memorandum of understanding (MOU) with Aroha Resources
- Under the MOU, Aroha would gain exclusive uranium exploration and mining rights for certain deposits within Havilah’s exploration licences
- However, this is subject to Aroha listing on the ASX via an initial public offering (IPO)
- The MOU will lapse if Aroha’s IPO does not proceed within 12 months
- Havilah Resources is up 4.76 per cent and trading at 22 cents per share
Uranium miner Havilah Resources (HAV) has entered into a binding memorandum of understanding (MOU) with Aroha Resources.
Under the MOU, Aroha would gain exclusive uranium exploration and mining rights for sediment-hosted uranium deposits, located within specific Havilah exploration licences.
However, this is subject to Aroha listing on the Australian Securities Exchange, via an initial public offering (IPO).
The MOU between the two parties will allow them to proceed in good faith on an exclusive basis. It will also allow Aroha to obtain initial seed capital through an Information Memorandum, in anticipation of the required IPO.
If the IPO goes ahead, Havilah will maintain an interest in the venture through a 25 per cent holding of fully diluted issue share capital in Aroha, at the time of the IPO. Within one month of listing on the ASX, Aroha must pay $500,000 from its IPO proceeds to Havilah.
The MOU between Havilah and Aroha will lapse if Aroha’s IPO does not proceed within 12 months.
Havilah’s Technical Director, Dr Chris Giles, said the company is delighted that Aroha intends to fund and advance Havilah’s extensive uranium interests.
“This MOU is consistent with Havilah’s stated strategy of maximising the value of its significant pipeline of exploration projects in South Australia, while focusing the company’s main efforts on advancing its core projects with near-term potential for significant value uplift for shareholders,” he said.
“It also achieves Havilah’s objective of progressing its non-core prospects and projects in a prudent manner with external funding and leaves Havilah shareholders with a fair residual benefit in the event of success,” he added.
Havilah Resources is up 4.76 per cent, trading at 22 cents per share at 12:08 pm AEDT.