Megado Minerals, an Australian company, has announced a significant acquisition deal in northern Spain, aiming to acquire an 80% interest in the Iberian Copper Project. This project spans a 956 km² area and includes 12 permits, featuring at least 12 historic copper mines.
The acquisition involves a share swap agreement with the current shareholders of Iberian Copper (ICPL). In exchange for their interest in the project, Megado will issue 175 million shares, 175 million Class A performance rights, and 175 million Class B performance rights. The performance rights are convertible into shares on a one-to-one basis, contingent on the achievement of specific project-related milestones.
Notably, Megado directors Anthony Hall and Aaron Bertolatti are non-controlling shareholders of ICPL, raising the possibility of some potential conflicts of interest, though they would likely recuse themselves from decisions directly impacting the acquisition process.
To support the acquisition and fund the transaction, Megado will also conduct a non-renounceable rights issue, offering one share for every two shares held at a price of A$0.012 (1.2 cents) per share. The rights issue could raise up to A$1.53 million.
This deal represents a major expansion of Megado’s footprint in the copper sector, with significant upside potential if the project’s milestones are met and if copper demand continues to grow globally.
