LCL Resources has cleared major hurdles in its sale of Colombian gold assets to Tiger Gold Corp, with shareholder approval the final step before a $1 million payment is triggered.
- Two key conditions in asset sale to Tiger Gold Corp met or waived
- Legal opinion on mineral claims confirmed, audited financials waiver granted
- Shareholder meeting scheduled for February 17 to approve transaction
- Initial $1 million payment contingent on shareholder approval and final approvals
- LCL management strongly recommends shareholder support for the deal
Progress on Colombian Asset Sale
LCL Resources (ASX: LCL) has announced significant progress in the sale of its Colombian gold assets, the Andes Gold Project and the Quinchia Gold Project, to Tiger Gold Corp (TGC). The company confirmed that two of the key conditions precedent to the transaction have either been met or waived, moving the deal closer to completion.
Specifically, Tiger Gold Corp has received a legal opinion confirming the good standing and validity of the mineral claims underpinning the assets. This legal validation removes a critical hurdle that could have delayed or derailed the transaction. Meanwhile, LCL has secured a waiver for the requirement to deliver audited financial statements for its Colombian subsidiaries for the year ended December 31, 2024. Although waived as a condition precedent, LCL remains committed to providing these audited accounts to TGC by late February or early March 2025.
Shareholder Approval: The Final Condition
The only remaining condition precedent for Tiger Gold Corp to make the initial payment of AUD 1 million is the receipt of formal confirmation from LCL that all necessary approvals for the transaction have been obtained. This hinges on the outcome of a shareholder meeting scheduled for Monday, February 17, 2025, where shareholders will vote on whether to approve the transaction as outlined in the Notice of Meeting released earlier in January.
LCL’s Board and management have publicly recommended that shareholders vote in favour of the deal, highlighting the strategic and financial benefits of the transaction. The sale is expected to provide LCL with immediate capital inflow and allow the company to focus on other growth opportunities.
Market and Strategic Implications
The removal of key conditions and the upcoming shareholder vote mark a pivotal moment for LCL Resources. Successfully closing this transaction could strengthen the company’s balance sheet and potentially enhance shareholder value by unlocking capital tied up in the Colombian projects. However, the final approval remains a critical uncertainty, and the market will be closely watching the shareholder meeting outcome.
Should the transaction proceed, Tiger Gold Corp will gain control of two promising gold projects in Colombia, potentially expanding its footprint in a region known for its mineral wealth. For LCL, the divestment signals a strategic shift and a focus on streamlining its asset portfolio.
Executive Chair Chris van Wijk has authorised the announcement and remains available for further enquiries, underscoring the company’s transparency and commitment to keeping investors informed as the transaction progresses.
Bottom Line?
With shareholder approval looming, LCL’s Colombian asset sale stands on the cusp of unlocking fresh capital and reshaping its strategic focus.
Questions in the middle?
- Will shareholders approve the transaction at the February 17 meeting?
- What impact will the sale have on LCL’s future exploration and development plans?
- How will Tiger Gold Corp integrate and develop the Andes and Quinchia projects post-acquisition?