Kazax Minerals has issued a second tranche share payment to Safin Element GmbH as part of its acquisition of a 75% stake in Lomonosovskoye Ltd, which has unrestricted exploration and production rights to the Lomonosovskoye iron deposit in Kostanay Oblast, Kazakhstan.
Kazax previously completed a first tranche payment to Safin under the share purchase agreement (SPA) for the Lomonosovskoye Limited Liability Partnership comprising a cash payment of US$6,933,784 and the issuance of more than 23 million common shares of the company.
The second payment saw Kazax pay US$18,800,480, comprising a cash payment of US$15,230,480 and a conditional payment of US$3.57 million payable through the issuance of common shares.
In addition, the terms of the SPA require that the company must make a third payment totalling US$18,800,480 comprised of a cash payment of US$15,230,480 payable quarterly commencing March 30, 2014, and a conditional payment of US$3.57 million payable through the issuance of common shares.
Upon completion of the acquisition Safin, together with its parent company Safin HandelsgesmbH, of Vienna, Austria, will have ownership of about 20.29% of the issued common shares of Kazax.
Kazax Minerals is an iron ore-focused mining exploration and development company aiming to be a significant mid-tier international exploration and development company.