Irish mining group Ovoca Gold said it plans to acquire a 74 per cent stake in CJSC Ayax Prospectors Artel in addition to an option on the rest.
Ovoca is issuing some 110 million new shares for the stake in Ayak, which owns the Goltsovoye silver deposit in north east Russia, and will pay $1 million in cash within six months of completing the deal.
The new shares will represent about 44.3 per cent of Ovoca's enlarged share capital.
The option to acquire the remain 26 per cent runs up to the second anniversary of completion of the initial deal and would entail the issue of a further 43 million shares or a $5 million cash payment if the value of the shares is less than $5 million at the time.
At the same time, Ovoca said it is looking for fresh financing and warned it does not have sufficient working capital to fund its various developments and feasibility studies.
"The board of Ovoca has plans to raise the necessary finance to fund these requirements, by way of private placements or other financial arrangement," Ovoca said.