WEST Perth-based Croesus Mining will be transformed into a base metals explorer following a deal with gold miner Apex Minerals and prospector Mark Creasy.
Under the deal, Apex and Mr Creasy will spin-off their prospective nickel assets in Western Australia into Croesus, which will be restructured and rebadged as Sirius Resources following a capital raising of up to $7 million.
The raising, through a private placement, will be managed by Blackwood Capital, which will offer shares at steep premium of 85 cents.
Shares in Croesus last traded at 1.6 cents.
In consideration for the transfer of its nickel assets, Apex will receive about 67 million Croesus shares and 600 million five-year options with a strike price of 3 cents.
Mr Creasy will receive 267 million Croesus shares as reimbursement for past exploration costs incurred on the properties and interests to be transferred to Croesus.
After the Croesus capital raising, Apex will have a 4 per cent stake in Croesus that will rise to 27 per cent on a fully diluted basis.
Mr Creasy, who currently holds 45 per cent of Croesus, will hold a 29 per cent stake, which will decrease to 20 per cent on a fully diluted basis.
The new company will house prospective exploration acreage in WA's rich nickel sulphide belt, which hosts mines such as BHP Billiton's Leinster and Mount Keith projects.
