Highlights
- Forge Resources has secured an $8.5 million funding package through a part sell down of its interest in its Balla Balla VTi Magnetite Project and a commitment to assist Forge with its funding requirements for its West Eulca Fraser Range Project;
- Forge’s Balla Balla Joint Venture Partner – Todd Corporation has agreed to provide the funding package on terms which Forge considers are value accretive to the Company;
- The part sell down to Todd Corporation is subject to Forge shareholder and other approvals;
- Shareholder documentation is being prepared for a proposed shareholder meeting to be held in August 2013.
The Board of Forge Resources (“Forge”, ASX:FRG) is pleased to announce that it has agreed terms with Todd Corporation (“Todd”) whereby Todd have agreed to provide Forge with an $8.5 million funding package on the following basis:
i. Forge has agreed to sell down 7% of its interest in the Balla Balla VTi Magnetite Project for a consideration of $7 million (taking Todd’s share to 32% and Forge’s share to 68% of Balla Balla); and
ii. Todd has agreed to provide Forge with a funding commitment of $1.5 million to be applied towards working capital and expenditure commitments on its West Eulca Project tenements, located in the Fraser Range region, Western Australia.
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