Erongo Energy announced today that it would acquire the unlisted company Ninghan Exploration and appoint ex-Perseus Mining Managing Director, Mark Calderwood, to its board.
Under the acquisition agreement, Erongo will issue Ninghan with 16 million shares and provide $50,000 as reimbursement for past expenses associated with exploration at Ninghan’s Lyons project.
The Lyons project includes applications for two exploration licences totalling 1,248 square kilometres on properties prospective for gold, copper, lead, silver and zinc in the Mid West, around 230km northwest of Meekatharra.
On the back of the acquisition, Mr Calderwood is to join Erongo’s four-man board and become Technical Director of the company, responsible for advancing the Lyons project to granted exploration licences and identifying new projects.
Mr Calderwood resigned from gold producer Perseus Mining in January after ten years as CEO and MD. He will remain a non-executive director of Manas Resources, an ASX-listed gold explorer focused on the Kyrgyz Republic (Kyrgyzstan).
Erongo also announced it would launch a non-renounceable four-for-five entitlement issue, priced at 0.5 cents, in order to raise approximately $534,357. The issue is to be fully underwritten by Pareto Capital and sub-underwritten to the tune of $250,000 by Mr Calderwood and the company’s existing directors.
Funds will be directed towards advancing the Lyons project and to undertaking further exploration at Erongo’s existing Maniema Gold project in the eastern Democratic Republic of Congo, currently prospective for gold and tin.
Erongo shares last traded at 0.5 cents, down 0.2 cents (or 28.6%) from Monday’s close.