A mining venture? An Australian fashion business has brokered an unexpected deal.
Australian-based manufacturer and distributor Beyond Sportswear International (BSI) has inked deals acquire a pair of unlikely businesses that could boost the company's coffers significantly.
The company, which manufactures and distributes schoolwear and sportswear, has confirmed it has entered into agreements to acquire 100 per cent of Bar Metals Pty Ltd and Bar Exploration Pty Ltd, the holders of the Long Horse Nickel Sulphide Project and the Hooley Well Project (the 'Projects').
While the takeover of the 'Projects' by BSI is unexpected given the company's usual undertakings in the apparel and manufacturing sector, BSI believes the surprise investment it could yield some hefty rewards.
The Long Horse Project, which consists of three exploration licence applications (E15/1352, E15/1372 and E15/1373), covers a total of 87 blocks and is adjacent to mineral claims and nickel sulphide occurrences owned by Hannans Reward Limited’s (ASX: HNR) Queen Victoria Rocks Project.
The Long Horse project area, located in close proximity to Hannans Reward Limited (ASX: HNR) Queen Victoria Rocks project, also includes areas formerly included in a joint venture between Emu Nickel Limited and Mincor Resources NL.
According to BSI, the Emu Nickel Limited and Mincor Resources NL joint venture identified a “large magnetic anomaly at the margin of felsic granitoid intrusions”.
“Postulated causes for the magnetic anomaly were a large magnetite source formed at an endoskarn setting or a folded banded iron formation wrapped around the granitoid.”
The Hooley Well Project consists of one exploration licence application (E09/2045) covering a total of 27 blocks in the Gascoyne region of Western Australia. Past exploration for nickel has been undertaken by a number of companies since the 1960’s.
While both areas have been investigated previously by other companies at different periods, BSI said it plans to continue the exploration.
“The Company plans to follow up on these anomalous drill results following review of the available geophysics over the area.”
Completion of the acquisition of the 'Projects', however, remains conditional upon execution of formal agreements, completion of due diligence to the satisfaction of BSI, the grant of all exploration licences, and a capital raising of not less than $3,000,000 at not less than $0.20 per share.
The final handover will also not occur prior to a consolidation of capital (at a ratio to be determined by the company at a future date) to comply with the requirements of chapters one and two of the Australian Securities Exchange (ASX) Listing Rules applicable for reinstatement to official quotation, and all necessary third party, regulatory and shareholder approvals are received.
The acquisition of the 'Projects' by BSI follows a rocky period for the company, which reported a significant loss for the 2012 financial year.
The company, which also reported a drop in total revenue for the half year ended December 31, suffered a net loss after tax (NLAT) of $4.06 million for the 2012 fiscal year, compared to a net profit after tax (NPAT) of $0.25 million.