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Tellus to buy Northern Discovery

Tellus to buy Northern Discovery

Mineral exploration company Tellus Resources (NSX:TLU) has arranged to acquire unlisted public company Northern Discovery in an all-stock deal.

Tellus on Friday disclosed it would acquire the company, which has a portfolio of coal assets in Indonesia, for around 45 million shares.

Northern Discovery has entered into a series of agreements to secure interests in coal concessions in the regions of Balikpapan, East Kutai, South & Central Sumatra and Papua.

The deal will involve Tellus issuing three new shares for every four of Northern Discovery's 44 million shares on issue, plus one option for every two of these shares. The options will be exercisable at $0.25 each within two years of issue.

Tellus will also take on a commitment to allocate 12 million shares and three million options to one of Northern Discovery's Indonesian partners.

Following the transaction and a planned capital raising to secure at least $5 million in further funding, Tellus' shares on issue would more than triple to 91.15 million.

TLU shares stayed flat on Friday at $0.190.

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Tags Tellus ResourcesNorthern DiscoveryindonesiaminingMergers and acquisitions

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