Stock exchange firm enters into non-binding agreement

Business
Source:
The National, Wednesday July 20th, 2016

Singapore stock exchanged listed company Lifebrandz Ltd (LB) announced that it has entered into a non-binding term sheet with Asidokona Mining Resources Pte Ltd (ASDK) for the proposed acquisition of Tolukuma Gold Mines Ltd (TGM).
The term sheet also included requirement for LB to provide funds to Tolukuma Gold Mines Ltd for its operations prior to the completion.
TGM is a wholly-owned subsidiary of Asidokona Mining Resources Pte Ltd.
The announcement last Wednesday concerns a proposed acquisition and there had not been any sale or transfer of ownership in TGM, nor has there been any exchange of cash or profiteering by shareholders of ASDK.  The term sheet concerns an all-share deal where LB would acquire Tolukuma Gold Mines Ltd.
According to ASDK, the proposed acquisition is subjected to certain conditions, key being the restart of mining operations and exploration programme currently underway at TGM.
“If the conditions are met, the value of TGM would far exceed value of LB and the resultant effect, should the proposed acquisition proceed, is that the shareholders of ASDK would become majority shareholders of LB as the consideration would be paid for in new shares issued by LB,” ASDK noted in an market release.