Australia’s Mont Royal Resources has announced plans to acquire a 75% stake in Northern Lights Minerals (NLM).

NLM is an Australian proprietary limited company with the rights to acquire a 536km² land package in the Upper Eastmain Greenstone Belt in Quebec, Canada.

The potential acquisition will provide Mont Royal with access to this land package, which will expand its presence in the province.

NLM’s assets were said to be prospective for both precious and base metals mineralisation.

Besides owning a 100% stake in Tarku, RHE-Extension, CR Properties, NLM holds the option to acquire a 70% interest in the Dios Assets and a 100% interest in the Focus Assets.

As agreed, Mont Royal will issue five million fully paid ordinary shares to NLM as consideration. The shares will be subject to voluntary escrow for 12 months.

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In connection with the acquisition, Mont Royal will also raise around $2.98m (A$4m) by issuing 20 million shares at the price of A$0.20.

However, the closing of the acquisition is subject to certain preceding conditions, including the completion of fundraising of at least A$4m.

The transaction is also subject to satisfaction of Mont Royal’s due diligence investigations, shareholder approvals and the signing of a formal agreement.

All conditions must be satisfied or waived by 1 November 2021.

Mont Royal will seek shareholder approval in the annual general meeting slated to be convened soon.

In a statement, Mont Royal said: “The board of Mont Royal expects to be able to complete due diligence on the acquisition assets shortly.

“Subsequently, the company will prepare and despatch the materials to shareholders that are required in order to consider the proposed acquisition and associated capital raising at its forthcoming Annual General Meeting.”