🕐28.10.14 - 03:00 Uhr

RMG LIMITED [ASX:RMG] - ACQUISITION OF CHILE COPPER PROJECT





Fortbridge Media Release

RMG Limited [ASX:RMG] - Acquisition of Chile Copper Project

RMG Limited (ASX:RMG) (RMG, the Company) is pleased to advise it has executed a binding agreement with its Joint Venture partner in the Tuina Copper Project, Chile Metals Consulting SpA (Chile Metals), to acquire 100 per cent of the Joint Venture previously entered into by the two companies.

The terms of the transaction are:

* RMG will issue 40,108,785 shares and 16,000,000 options (exercisable at 0.099 dollars on or before 31/08/2016) to Chile Metals or its nominee

* Chile Metals will assign a USD1.565m debt owed to it by Sociedad Contractual Minera Porvenir (Porvenir) to RMG

* Chile Metals will retain a 2 per cent NSR over all permits within the Tuina Copper Project as at the Agreement date, excluding the permits subject to the Porvenir Option Agreement

* RMG may purchase 50 per cent of the NSR for USD10,000,000 dollars, leaving Chile Metals with 1 per cent NSR

* Chile Metals will retain a 0.5 per cent NSR over the Porvenir Permits

* Chile Metals has the ability to appoint a member to the Board of the Company

* The completion of the transaction and issue of the shares and options is subject to approval by the Company shareholders.

The transaction substantially simplifies the structure of the original Joint Venture and provides a clear ownership structure for the future development and financing of the Tuina Project. The assignment of the Porvenir debt also provides the Company with greater flexibility in its future negotiations with Porvenir with respect to the existing option agreement it has with that company.

The Company is currently drilling on the Porvenir permit area which is regarded as an attractive short and long term development opportunity for the Company.

The simplification of the structure will allow us to continue our development of the Tuina Copper Project in a much simpler and efficient manner and the addition of Chile Metals to our register is a welcome addition given our long term close working relationship, Chairman Robert Kirtlan said.

To view the full announcement please click on the link below:

For further information please contact:

Mr. Robert Kirtlan
Executive Chairman
T: +61 8 9387 6619
E:
W:

For media and investor inquiries, please contact:

Fortbridge / Sydney
Bill Kemmery
Tel: +61 400 122 449
Email:




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