Mentum Inc Acquires Proposed Acquisition of Advanced Large Scale Copper-Gold Deposits in Kyrgyz Republic
Mentum Inc (AIM: MEN) announces that it has entered into a memorandum of understanding with the intention of acquiring the Kyrgyz Republic mineral exploration and development operations of Australian Stock Exchange listed Robust Resources Limited ("ROL"), together with approximately £3.5 million of cash, for £27.0 million, which will be satisfied entirely by the issue of new shares of Mentum (the "Acquisition") at a price of 0.575 pence per share.
An announcement is expected to be made by ROL in relation to the proposed transaction which can be downloaded from ROL's website at www.robustresources.com.au and contains a detailed presentation by ROL about the Kyrgyz Republic operations.
The deposits to be acquired are located within the Central Asian Orogenic Belt, which hosts several world-class multi-million ounce gold deposits, including Muruntau, Almalyk and Oyu Tolgoi. The Directors believe that there is considerable scope for advancing the multi-asset portfolio to near term copper and gold production.
On completion, the Acquisition will mark Mentum's transition into an operational exploration and development company focused on one of the world's richest gold-copper belts. It is intended that subject to shareholder approval, the name of Mentum Inc will change to Tengri Resources.
Peter Moss, Chairman of Mentum, commented:
"I am very pleased indeed to provide shareholders with this positive and substantial update. I believe that both the timing of the transaction at this stage of the economic cycle, as well as the quantum and quality of the assets, can provide a strong platform for growth for shareholders."
"These assets provide a pipeline of projects maturing through the exploration and development process towards economic feasibility and possible mining. In the long run, I believe they have the potential to deliver strong investment returns and the possibility to become significant copper and gold producers in the future. One of the consequences of this transaction is that Mentum will benefit from the interest of Robust's top quality investors to our shareholder register, supplemented by a world-class management team. "
"I would like to thank everyone involved in the proposed transaction and look forward to welcoming to Mentum the talented team led by Gary Lewis, Managing Director of Robust, which post Acquisition will be charged with managing and developing the projects. I would also like to take this opportunity on behalf of myself and the other directors of thanking all shareholders for their support in the past few months. Charles, Shahed and I will continue as directors until the EGM to be called to consider the Acquisition when we will be stepping down if shareholders approve the transaction. It has been a privilege to be involved with this exciting venture. The Acquisition is taking place at a juncture in the cycle for natural resources when copper and gold assets are in the process of being positively re-rated, and this is a particularly pleasing confluence of circumstances that bodes well for Mentum's shareholders."
The Shareholder Circular (comprising an AIM Admission Document) seeking shareholder approval of the Acquisition, which is expected to be published within 21 business days of the date of this announcement, will contain detailed information on the companies Mentum intends to acquire and their assets, proposed name change, capital reorganisation, and changes to the Board of Directors.
Pursuant to AIM Rules 14, the transaction, if completed, would constitute a reverse takeover and therefore the Company has requested that its shares be suspended from trading on AIM pending an admission document being posted to shareholders.
The Acquisition would be subject to, inter alia, MEN and ROL entering into a Sale and Purchase Agreement, approval by MEN shareholders and to admission of the enlarged share capital to trading on AIM. Irrevocable undertakings to vote in favour of the transaction are expected to be received from holders of 33.17 per cent of Mentum's existing issued share capital.