Forgent (AIM:FORG) told investors it has renegotiated the payment structure for its option to acquire 80% of the Mount Sholl nickel-copper-PGE project in Western Australia, spreading the A$2.7 million consideration across four instalments rather than a single payment on exercise.
The London-listed, Australian-focused critical and precious minerals explorer said the first instalment will now be A$975,000, comprising A$437,500 in cash and A$537,500 in Forgent shares, payable only when the option is exercised.
That cuts the upfront exercise cost by approximately 64% against the original terms agreed on 8 June, under which the full A$2.7 million fell due on exercise.
The remaining A$1.725 million will be paid in three further instalments of A$575,000 each, due three, six and nine months after exercise, split between cash and shares.
Half the share consideration in every instalment will be priced against the 10-day volume-weighted average price immediately before exercise, with the other half priced against the 10-day VWAP before the relevant quarterly issue date, and 50% of the shares issued under each tranche carry a six-month lock-in.
Mount Sholl hosts a 2023 JORC maiden mineral resource estimate of 23.4 million tonnes at 0.36% nickel, 0.40% copper and 0.31 g/t for combined platinum, palladium and gold, equivalent to 0.60% nickel-equivalent, alongside a lower-grade envelope of 40.4 million tonnes at 0.28% nickel.
The option, originally secured in June with A$100,000 paid via the issue of locked shares, has now been extended to 14 November, and Forgent said it intends to put security arrangements in place over its 80% interest in the tenements until all four instalments are settled, releasing once payment is complete.
Read more about Forgent
- 08/10/26Forgent sets October date for first wave of Peak Hill Phase II assays
- 30/09/26Forgent raises £500,000 via shareholder subscription
- 08/06/26Forgent agrees five-month exclusive option to buy 80% of Mount Sholl for A$2.7m
Raiden Resources, the ASX-listed counterparty, will retain a 20% interest in the project, free-carried through up to A$4 million of gross project expenditure before standard dilution applies under a joint operating agreement.
Forgent stressed that the revised terms involve no additional consideration and do not amount to exercising the option, which remains a separate decision still to be taken.