Apple Fields set for Nevada paydirt?

The former corporate apple grower says a conditional agreement has been reached with an Adelaide project management company and Delaware-based Titan Resources to buy mined ore concentrates located in the desert state, mainly famous for its gambling resorts.

The purchase includes the benefits of a refining contract over the ore and the metals refined from the ore located in Wellington, Nevada.

"In particular, the transaction is conditional on the reports confirming that the mined ore concentrates are reasonably expected to produce metals up to the value of US$115 million," Apple Fields says.

"The purchase, if approved, contemplates a consideration of between $NZ100 million and up to US$115 million."

The company says the deal will be financed by the issue of 200 million ordinary shares in Apple Fields at 50 cents each for the mined ore concentrates.

Further shares would be issued progressively at $1.00 each for the increased value that the refining process creates, in excess of NZ$100 million.

The transaction is conditional on the provision of a number of independent reports. These will evaluate the value of the mined ore concentrates and look at other factors such as environmental risks and the terms of the refining contract.

Provided pre-conditions are met, a special general meeting to consider and decide the deal is expected in three to four months time.

Apple Fields says the Adelaide company involved in the deal, SABC Project Management, has also entered into a conditional agreement with interests associated with Charles and Tom Kain to take voting control over 19.9% of the shares held by those interests in Apple Fields.

"Should that agreement become unconditional within two working days then Tom Kain will resign from the board of Apple Fields, with the two current independent directors to be joined by two nominees of SABC and a further independent director," the company says.

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