The Canadian Zinc Exploration Miner Ubique Minerals Limited (UBQ) announced last week that it is withdrawing from the non-binding Memorandum of Understanding which it had entered into with Alumina Ventures Ltd (AVL) to acquire 80% shares of the Port Loko Bauxite mines, claiming issues with “due diligence” and “contractual requirements.”
On August 5th 2021 Ubique had announced the signing of a non-binding MoU with AVL who are the 100% shareholders of the concession.
Earlier in April 2021 AVL acquired all of SierraMin’s assets, and on 8th July 2021 AVL signed an MoU with UBQ to “have an option” to acquire 51% stake in the Port Loko concession by spending $3 million on infrastructure and project costs and making a commercial production shipment.
In the 5th August MoU, UBQ by investing another $5 million can acquire a further 29% shares making 80% controlling shares, and AVL shareholders will get a 2.5% Royalty with a buy back price.
UBQ had transferred $25,000 as “loan payable on demand” to AVL with 30 days exclusivity to do due diligence and advanced a further $50,000.
Since UBQ have now terminated the non-binding MoU, they are now discussing the repayment of the loan facilities
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