Olea Australia (ASX:OLE) will change its focus to gold exploration after arranging to acquire West African exploration assets.
The one-time olive growing and olive oil processing company has signed agreements to acquire Westaf Pty Ltd and JEM Resources Pty Ltd, which are both pursuing African mining projects.
JEM, though a subsidiary, has made applications for exploration licenses over land in Cote D'Ivorie, while Westaf is part of a heads of agreement to acquire a gold project in Ghana.
The proposed Westaf transactions will involve Olea issuing 1 million shares, 1.5 million options, 1.25 million performance shares and 1.25 million performance options to Westaf shareholders. The options will have an exercise price of $0.40 per share and a term of three years.
Under the JEM agreement, Olea will pay 5 million options at the same $0.40 price and 24 million performance shares which will be convertible subject to certain milestones.
Olea plans to raise $3.25 million at $0.20 per share through various means to help fund the acquisition.
Olea deregistered its operating subsidiaries in 1H11 and embarked on a search for a new business to pursue.
OLE shares were suspended from trading at $0.004.