Future Metals acquires Australian exploration business

(Sharecast News) - Mining company Future Metals has exercised its option to acquire 100% of Australia-focussed exploration firm Osprey Minerals. Future Metals said on Friday that Osprey shareholders will receive the upfront consideration of 18.38m new ordinary shares of no par value in the capital of the company within the next five business days.

The AIM-listed company shall pay a deferred consideration of AUD $325,000 (£169,930) in new ordinary shares or cash six months from the date of exercise. Once Future Metals drills 2.0km or more on the Osprey tenements, an additional AUD $325,000 in new ordinary shares or cash will be payable to Osprey shareholders.

In the event that Future Metals elects to pay the deferred consideration in new ordinary shares, it will be priced at the five-day VWAP at the time of the milestone being met.

Managing director Jardee Kininmonth said: "We are pleased to have closed out this transaction with Osprey and welcome our new Future Metals' shareholders. The tenements acquired as part of the transaction are incredibly complementary to our activities at Panton and in the East Kimberley.

"The Eileen Bore prospect is an exciting, advanced exploration target amongst a portfolio of compelling targets throughout the acquired tenement package, and we look forward to updating the market shortly on our forward plans for the projects."

As of 1330 GMT, Future Metals shares were down 4.76% at 2.0p.

Reporting by Iain Gilbert at Sharecast.com