Grabasa Deal Extended – Again
VANCOUVER, B.C. — Fairmont Resources Inc. now gets until April 24 to complete its buyout of bankrupt Spanish stone company Granitos de Badajoz.
Court officials in Badajoz, Spain, gave Fairmont another extension to finish the financing of a €4.275 million deal to bring the assets of the dimensional-stone quarrier and processor out of receivership.
The new timetable marks the third extension in four months for Fairmont to pull together a financing package for the Granitos deal.
Spanish courts extended the deadline last December, giving Fairmont until Feb. 22 to finalize the purchase. Another extension in late February pushed the due date to March 8; last week, Fairmont’s deadline moved to April 24.
In February, Fairmont President/CEO Michael Dehn said that European finance interests needed a short amount of time to complete necessary documentation. This month, he noted that more time was needed.
“Unexpected delays with clearance documentation from the European based funding group put us in a
position that required an extension request” states Michael Dehn, Fairmont president/CEO.
The asset purchase would include Grabasa’s fully operational processing and finishing facility near Burguillos del Cerro, Spain, as well as 23 granite quarry leases and related equipment. The deal will bring Fairmont a production chain capable of an estimated 2.7-million ft² of annual production.
Fairmont will pay €2.7 million to Grabasa for 22 mining licenses, the 452,000 ft² processing plant, land, machinery, equipment, stock and vehicles, as well as €1 million to Gesminesa (Gestion y Estudios Mineros S.A.U) of Badajoz, Spain, for the Grabasa I-B mining license. Madrid-based Eureka Trading and Procana Consulting of Markham, Ontario, will receive €575,000 for engineering, due diligence, translation, negotiation, court fees, expenses and success fees.
Last summer, Fairmont advanced €155,000 as a deposit on the acquisition, along with €60,000 from Eureka Trading.
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