Progress With Regard to Prospective Acquisition
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RLV No. 3 Limited (RLV) | 11:24 am, Thursday 2 October 2008 | RLV | 0.220 |
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Progress With Regard to Prospective Acquisition
The Directors of RLV No.3 Ltd announce that they are in discussions with third parties in respect of potentially acquiring an iron ore project in South America.
In anticipation of entering into and completing this transaction, RLV No.3 Ltd has entered into a conditional subscription agreement with an off shore investor to raise up to US$25 million by the issue of up to 200 million new ordinary shares in the Company at an issue price of USD 12.5 cents per share. The Subscription arrangements are subject to the prospective acquisition completing on or before 20 December 2008.
The Company has received a deposit of US$2.5 million on account of the subscription arrangements. The deposit will be refunded to the investor should the prospective transaction not proceed.
The Directors are hopeful that an agreement for the sale and purchase of the iron ore project can be completed and executed within the next few weeks, and should that happen, the Directors expect that a special meeting of shareholders will be held to consider the issue before the end of November 2008 with settlement to occur shortly thereafter.
“At this stage all parties are moving forward in a positive manner, with the aim to settle the acquisition of the new business before year end” says RLV No.3 Ltd director Brett Wilkinson.
More information as to progress with this prospective transaction will be released in due course.
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