BWA Group (AQSE: BWAP) said it has reached a conditional agreement to sell its investment in Kings of the North Corp., to St George’s Eco-Mining Corp.
The Company, which has mineral exploration licences split between Canada and Cameroon, said it has ‘proved impossible’ to manage and develop effectively the investment in KOTN from the UK, primarily arising from the impact of the COVID-19 pandemic’s restrictions.
Richard Battersby, Chairman of BWA Group has highlighted to investors that the disposal of these North American assets will enable the Company to focus fully upon the development of its exploration licenses in Cameroon in rutile sands and related minerals.
Shares in BWA Group opened this morning at 0.7p.
As a result, it has been agreed between the Company and St George’s that St George’s and the original KOTN shareholders will acquire the BWA Group’s 100% in KOTN for £4.3 million.
KOTN was acquired from St George’s on 1 October 2019 for a consideration of £4.66 million.
St George’s will issue 1,500,000 new shares to BWA, together with a transfer of 2,500,000 warrants exercisable at Canadian $0.185 until 28 February 2021. St George’s will retain its equity interest in BWA amounting to some 21%, this morning’s statement outlined.
BWA Group said it expects this transaction to be completed by 31 August 2020.
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