Energizer Resources Inc. (TSX:EGZ,OTCQX:ENZR,FWB:YE5) and Malagasy Minerals Limited have signed a binding Memorandum of Understanding for the acquisition of Malagasy’s remaining 25% interest in the joint venture entity, which holds Energizer’s Molo Graphite Project. The formal purchase and sale agreement will be completed within 45 days.
As quoted in the press release:
With the purchase of Malagasy’s 25% interest, Energizer will own 100% of the Molo Graphite Project as well as a 100% interest in and to all of the industrial mineral rights within the acquired property, which is comprised of 2,120 claims totaling 94,011 hectares. The actual area of the Molo deposit as currently delineated is approximately 62 hectares, representing less than 1% of the total acquired land package.
Energizer President & COO, Craig Scherba, said:
We are extremely pleased to have signed an MOU with Malagasy and I would like to take this opportunity to thank them for their considerations in reaching this arrangement. We both fully appreciate that structuring an arrangement to consolidate the Molo Property ownership will provide the maximum opportunity to increase shareholder value for the respective companies. Acquiring 100% ownership of the Molo graphite deposit mineral rights will be another step forward in Molo’s mine development plan. This is a very significant benefit as we further our discussions with both potential strategic and off-take partners and should also help facilitate project financing for the future Molo mine.