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Laconia sells off Lennons Find

20th June 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Emerging precious and base metals developer Laconia Resources would divest of its Lennons Find base metals project, in Western Australia to Musketeer Minerals.

Under the terms of a binding term sheet, Lanconia would receive a A$100 000 cash deposit for a six-month exclusive option over the Lennons Find project.

Musketeer or its shell company would also be required to raise some A$2-million within seven days of listing on the ASX, and would need to issue Laconia with a 10% equity stake in the listed company.

Furthermore, Laconia would receive A$400 000 in cash from either Musketeer or its shell company, and would be allowed to nominate a board member as a nonexecutive director to the Musketeer or shell company’s board.

The transaction was also subject to regulatory and shareholder approval.

Laconia told shareholders that the terms of the transaction allowed the company to realise value held in the Lennons Find project, while allowing shareholders to retain exposure to, and gain a direct benefit from, the exploration in the region.

The Lennons Find project has a total mineral resource of 1.85-million tonnes, grading 82 g/t silver, 0.26 g/t gold, 0.2% copper, 1.4% lead and 5.1% zinc.

Edited by Creamer Media Reporter

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