Ortac Resources has signed an agreement to acquire an additional 33.82% of the issued share capital of Mauritian exploration company Casa Mining.
An additional offer will be made by the company to acquire the remaining issued share capital of Casa.
Under the agreement, the miner will issue 38,277,354 new ordinary shares to Casa in exchange for the interest.
Subject to the closure of the deal, Ortac will convert the $2m convertible loan note previously issued to it by Casa at an amended reduced share conversion price of $0.5586.
Ortac Resources chairman Nick von Schirnding said: “We are delivering on our strategy to focus on our portfolio of valuable African exploration assets and Casa is a very exciting and valuable part of our future.
“With a new board and a clear strategy in delivering shareholder value, we look forward to a new chapter for Ortac and its shareholders.”
Once the transaction and conversion of the loan note are completed, the company will hold 7,848,594 shares of Casa, amounting to 70.09% of the issued share capital.
Casa operates the Misisi gold project located in South Kivu, eastern DRC, with a 71.25% interest.
The licence holdings held by the company comprise three contiguous mining licences covering 133km², with a validity of 30 years.
The licences include the Akyanga deposit along with the Lubitchako, Tulongwe, Kilombwe, and Mutshobwe prospects.
A scoping feasibility study for the Akyanga deposit determined a net present value (NPV), at 8% discount, and internal rate of return (IRR) of $171m and 35% respectively.