- TAO Commodities has finished due diligence and will proceed with the acquisition of DSO Mining
- Purchasing 100 per cent of the iron ore company will give TAO the rights to a 26 tenement portfolio of iron ore projects here in Western Australia
- As one of the conditions, the company will need to raise $2.5 million through a placement with BW Equities and GTT Ventures acting as lead managers
- TAO Commodities’ shares remain flat and are trading for 12.5 cents each
TAO Commodities has completed its due diligence and has exercised the option to proceed with the acquisition of DSO Mining.
On October 25 2019, the company announced entering into an exclusive binding term sheet to acquire 100 per cent of DSO Mining.
The acquisition deemed attractive to TAO as pursuant to the term sheet, would have the rights to a portfolio of 26 tenements. This comprises three granted exploration licences and 23 pending exploration licences for iron ore projects covering a total of 874 square kilometres.
“The acquisition of DSO Mining exposes TAO to multifaceted iron ore exploration projects with an extensive footprint across Western Australia,” Executive Director Patrick Glovac said.
While TAO has completed due diligence, the acquisition remains conditional.
The company will need to obtain necessary shareholder and regulatory approvals and complete a $2.5 million placement of up to approximately 20,833,333 shares at $0.12 cents each.
In conjunction with GTT Ventures, BW Equities is acting as the Lead Manager for the placement.
BW Equities will facilitate up to $2 million worth of the funds in return for receiving a small percentage representing a management and capital raising fee.
GTT will facilitate $500,000 of the placement on similar terms as BW Equities.
TAO and DSO Mining have agreed to extend the transaction completion date from December 30 2019, to January 24 2020.
The company expects to hold the shareholder meeting in mid-January, with the placement likely to be finalised shortly after.
“We look forward to further evaluating each of the opportunities within the portfolio to prioritise the advancement of each of the respective projects and expedite exploration across the priority assets,” Patrick said.
TAO Commodities’ shares remain flat, and are trading for 12.5 cents each at 11:47 am AEDT.