Megado will issue 175 million ordinary shares to acquire 80% of Iberian Copper, which in turn holds a 100% interest in the project. Credit: Summit Art Creations/Shutterstock.

Megado Minerals has executed an agreement to acquire an 80% interest in Iberian Copper, which owns the Iberian Copper Project in northern Spain.

The acquisition is contingent on shareholder approval, and the company has also launched a rights issue and secured commitments for a placement to support the project’s development.

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Megado will issue 175 million shares for an 80% stake in Iberian Copper. Two additional tranches of 175 million performance rights will be issued based on resource estimate milestones. A non-renounceable rights issue at €0.12 per share on a 1-for-2 basis and a non-brokered placement of 38 million shares, plus 12 million more will also be completed.

The Iberian Copper Project, located in the provinces of Navarra and Aragón, spans 956km² and includes 12 permits under application.

The area is known for its historic copper oxide mining activity, which ceased in the 1970s. The project has identified at least 12 historic copper mines and more than 50 copper occurrences, offering multiple exploration targets.

Modest rock fragment sampling was completed in July 2024 to test relevant element and oxide grades from the former St. Emilia operating mine. Assay results from the samples show 9.66% copper and 141 grams per tonne of silver.

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After the acquisition, the vendors will retain a 20% free carry in the project until the company’s board decides to proceed with mine construction, after which standard dilution terms will apply.

The vendors will retain a 20% interest in the project, with dilution terms applying once mining construction is decided. Directors Anthony Hall and Aaron Bertolatti, as the shareholders, are set to receive consideration securities.

The company is also undertaking a rights issue to raise up to A$1.53m and has appointed Oracle Capital and Corporate Advisory to manage any shortfall. A non-brokered placement of 50 million shares is planned, with part of the proceeds used for exploration activities. Director and consultant options are also proposed, subject to shareholder approval.

An Extraordinary General Meeting is expected in late 2024 or early 2025 to vote on the acquisition and related securities issues.

Megado continues to hold interests in Canadian lithium and gold projects, and the North Fork Rare Earth Project in Idaho, US.