Coal miner, TerraCom Limited (ASX:TER) has today announced it has reached agreement with Springsure Investments to acquire its 51 per cent interest in Springsure Mining.
The consideration is via the issue 9,230,769 TerraCom fully paid ordinary shares at an issue price of $0.65 per ordinary share.
The price represents a 4 per cent premium to the closing share price on Friday 1 March 2019.
At completion of the transaction, TerraCom’s ownership percentage of Springsure Mining will increase to 87 per cent.
Springsure Mining covers a total area of 34.2 square kilometres and comprises 11 sub-blocks located approximately 8km north of the town of Springsure on the Gregory Highway in the Springsure Region.
The company says it's a key strategic transaction providing the potential to expand the Springsure Project MDL area to the East and North East.
Shares in TerraCom Limited (ASX:TER) closed flat at $0.63 on Friday.