Acquisition of Minority Interests at Marymia Project
The Directors of Riedel Resources Limited “Riedel” are pleased to advise that it has acquired through its wholly owned subsidiary AuDAX Minerals Pty Ltd ”ADXM”, the minority interests in the Marymia Project tenements EL’s 52/2394 and 52/2395.
Mr Franzen Executive Director of Riedel said that “This transaction effectively unencumbers these tenements yielding us a one hundred (100) per cent interest. We now have the currency to consider a number of exploration and development opportunities in the Doolgunna/Marymia Region.”
Pursuant to a Heads of Agreement dated 12 April 2010 between ADX Energy and Galtrad Pty Ltd “Galtrad”, in relation to tenements EL52/2394 and EL52/2395 (Marymia Project Tenements) (as assigned to ADXM on 20 May 2010), Galtrad is entitled to a ten (10) per cent free carried interest in relation to the portions of former EL52/592 and EL52/594 that are contained within the tenements. The free carry continues until a decision to mine, whereby Galtrad will contribute in accordance with its equity interest or dilute pro rata. Galtrad agrees to dilute its free carried interest to a five (5) per cent interest in relation to nickel and associated minerals should ADXM negotiate a joint venture with a third party for those commodities.
In consideration of the cash payment by ADXM to Galtrad (or its nominee), Galtrad agrees to sell and ADXM agrees to purchase and take assignment of all of Galtrad’s legal and beneficial right, title and interest in and to the Marymia tenements, free from encumbrances.
Upon settlement of the transaction, ADXM will hold one hundred (100) per cent interest in relation to tenements EL52/2394 and EL52/2395 known as the Marymia Project.
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