VANCOUVER – Pan Terra Industries Inc. (TSXV:PNT) has a preliminary deal to buy 80 per cent of a Namibian company with rights to acquire the Kombat mine and related assets in return for about $13 million of cash and shares.
The Vancouver-based company said Wednesday it will issue seven million common shares, an equal number of share purchase warrants and about $10 million in cash for the majority stake in Manila Investments (PTY) Ltd.
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Manila is a private company with a strategic partnership with Epangelo Mining Co., a government business. Manila’s chief asset is an October 2011 agreement for Manila to acquire the Kombat Mine and related assets.
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Pan Terra’s shares closed Friday, ahead of the four-day holiday weekend, at 42 cents. That makes the stock component of the transaction worth about $2.9 million and the total, excluding the warrants, at about $12.9 million.
The shares were untraded Wednesday at the TSX Venture Exchange.
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