- Embattled oil and gas company Red Emperor Resources (RMP) plans to acquire the Panton Platinum Group Metals (PGM) Project
- The company will do so by acquiring Great Northern Palladium, the subsidiary of which holds the project in WA’s Kimberley region
- Once the acquisition is complete, Red Emperor will start an aggressive drilling programme, to test for extensions at the project
- The company will seek to conduct a $10 million equity raising, which will go towards advancing the Panton PGM Project
- Red Emperor Resources remains suspended from trading on the ASX, and last traded at 1.7 cents per share in January
Embattled oil and gas company Red Emperor Resources (RMP) plans to acquire the Panton Platinum Group Metals (PGM) Project.
The Panton Project is located roughly 60 kilometres north of Halls Creek, in Western Australia’s East Kimberley region. It is held under three granted mining leases, which cover a combined area of approximately 23 square kilometres.
Red Emperor intends to acquire the project by acquiring 100 per cent of issued capital in Great Northern Palladium (GNP). GNP is the parent company of Panton Sill, which holds the granted mining leases covering the Panton Project.
Specifically, GNP owns 80 per cent of Panton Sill and holds an option over the other 20 per cent, which is currently owned by fellow ASX-lister Panoramic (PAN). By acquiring GNP, Red Emperor will indirectly gain 80 per cent ownership of both Panton Sill and the Panton Project.
Once it completes its acquisition, the company intends to exercise its option from Panoramic, in order to attain 100 per cent ownership of Panton Sill and the Panton PMG Project.
Red Emperor will pay GNP shareholders an all-equity consideration of $17.5 million, consisting of shares and options. Once the acquisition is complete, the company will commence an aggressive step-out drilling programme at the project, to test for extensions to its existing mineral resource estimate.
If completed, the acquisition would see the company change its major activities from oil and gas exploration to mineral exploration and development. With this in mind, Red Emperor plans to seek shareholder approval to change the company name to something that reflects its new direction.
Additionally, the company will conduct a $10 million equity raising, in which it will issue 100 million shares at ten cents each. This will provide Red Emperor with a strengthened financial position as it moves to advance the Panton PGM Project.
The capital raise, in conjunction with a 14:100 consolidation of its issued capital, will also help the company to re-comply with certain requirements of the ASX Listing Rules.
Emperor Resources remains suspended from trading on the ASX, and last traded at 1.7 cents per share in January.