RTG Mining Inc., an international mining exploration company incorporated under the law of the British Virgin Islands, has entered into an agreement with its joint venture partner, Elephant Copper Ltd. Under the terms of the agreement, the company sells 51 per cent interest in the Mkushi Copper Project in Zambia. The completion of the sale is expected in mid September 2013.
The purchase price of the transaction in the amount of US$13.1m will be satisfied by issuing US$6.6m in new fully paid ordinary shares in Elephant Copper, and a US$6.5m unsecured redeemable convertible note, which will be repayable on or before 1 January 2015, if not converted earlier.
Elephant Copper Ltd. is now in the process of completing a “go public event” through a transaction. It will also repay, on or before 1 January 2014, certain debts owing to RTG, which are currently in the order of US$1.35m.