Perth-Aragon Resources said July 1 that it has entered into an agreement to acquire all the shares and interests in Territory Phosphate Pty Ltd. The key assets of Territory are exploration titles and applications that cover the Ammaroo and Lady Judith Phosphate Prospects in the southern Georgina Basin and western Wiso Basin, NT. The Ammaroo licenses are located 280 kilometers north east of Alice Springs in the southern Georgina Basin. Aragon says phosphate mineralization was discovered at Ammaroo in 1968 during exploration by Vam Ltd. More recently, Aragon said diamond drilling and water bore drilling in 2005 further confirmed the phosphorite occurrences. The Lady Judith prospect is located 280 kilometers west of the Alice Springs-Darwin railway line on the western edge of the Wiso Basin. Phosphate assays of up to 31 percent P2O5 over 6 meters have been reported. Also, water bore RN020989 located within the tenement has yielded an assay of 28.2 percent over 3 meters from a depth of 15 meters and another interval of 2.2 percent from 72-75 meters. Aragon is acquiring 100 percent of the issue capital of Territory Phosphate for a consideration of 10 million fully paid ordinary shares and 10.0 million options over fully paid ordinary shares (convertible at $0.25 on or before Sept. 30, 2010) in Aragon Resources Ltd. Aragon will seek shareholder approval for the transaction at a General Meeting of shareholders to be held in due course. Subject to shareholder approval, Aragon will allot 7.5 million of the shares and 7.5 million of the options to the vendors as compensation for the three granted titles at the Ammaroo Phosphate Prospect. When the title covering the Lady Judith Phosphate Prospect is granted, Aragon will allot the final consideration. In addition, Aragon has agreed that the vendors will retain a small interest in the titles by virtue of a royalty entitlement of $1.00 per mt on ore mined and treated and sold from the Tenements.
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