Tuesday 21st October 2008
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The purchase of Minera Varry SA will be funded with US$13.5 million of cash and the issue of shares and options. The Chilean company owns a mining concession for the excavation, processing and export of iron ore and is expected to start production in the third quarter of 2009.
On completion of the transaction, RLV would be listed as Orion Minerals Group, it said in a statement.
For collateral on the deal, RLV plans to seek shareholder approval for a private placement of 200 million shares at an issue price of 12.5 US cents apiece.
Shares of RLV last traded at 1 cent on July 25 on the NZAX market.
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