$SUBB Signs Acquisition to acquire rights to a Diamond Concession in the Republic of Central Africa
HENDERSON, NV--(Marketwired - Jan 30, 2014) - Suburban Minerals Corp. (OTC Pink: SUBB) announced today the signing of the acquisition agreement to acquire the exploration, production and commercialization rights to a Diamond Concession in the Republic of Central Africa.
According to the agreement, the company will acquire the Diamond Concession Rights located in the Republic of Central Africa for a total of 300 million restricted common shares of Suburban Minerals at a price of $0.20 and 10 million convertible preferred shares at a price of $10.00, establishing the acquisition price at $160 million USD. Each Preferred share is convertible into 50 common shares of the company upon Suburban Minerals receiving financing in the amount of $300 million USD from the Intergovernmental Organization.
In addition to the issuance of common and preferred shares, Suburban Minerals will pay a royalty of 2.5% of gross profits to the Intergovernmental Organization and 10% of the operational budget up to a maximum payment of $500,000 yearly.
The company expects to complete due diligence, satisfy all regulatory requirements and close the acquisition on or before February 28, 2014.
"This is another significant milestone for our company, our shareholders and stakeholders," said Tim Sperling, President & CEO of Suburban Minerals Corp. "This acquisition is the stepping stone for the creation of sustainable value."
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