To acquire an option on the property, Billiton has committed to a private placement of $750,000 in shares and share purchase warrants in Maya. The major will buy 1.7 million units at 45 cents each for a total of $750,000. Each unit will consist of one share and one non-transferable warrant, and each warrant entitles Billiton to buy an additional share at 55 cents during the first year, and at 75 cents in the second year of the agreement.
The private placement will give Billiton 17% of the outstanding shares of Maya. If the major takes down all the warrants, its stake will rise to nearly 35%. Currently, Maya holds 7.8 million outstanding shares.
Billiton has the option of earning a 51% interest in the concession by spending another $2.25 million over the next three years, and it can acquire an additional 19% by providing project financing in the event the property reaches commercial production.
Maya intends to use the funds from the placement to drill the Los Lirios copper-gold porphyry target, as well as explore the surrounding 42,000-ha El Triunfo concession. The drilling will be preceded by mapping, sampling and geophysics.
The junior currently holds 120,000 ha of exploration concessions across Honduras.
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