Mallee Resources Limited (ASX:MYL) submitted a deed of company arrangement (“DOCA”) proposal to acquire Allegiance Mining Pty Ltd from Hartree Metals LLC on February 16, 2022. Mallee Resources Limited entered into deed of company arrangement to acquire Allegiance Mining Pty Ltd from Hartree Metals LLC for AUD 86.6 million on March 7, 2022. Consideration for the acquisition will comprise a mixture of cash and shares. The consideration consists of AUD 31.2 million in cash, AUD 3.5 million in liabilities assumed, AUD 51.2 shares in an upfront consideration and AUD 16.17 million in contingent consideration. MYL will also reimburse an estimated AUD 23.2 million in expenditure incurred in development of the Avebury project during the DOCA term. Hartree has agreed to provide working capital to fund the Avebury project during the term of the DOCA, MYL will reimburse Hartree for such an amount, which is estimated at being up to AUD 23.2 million by the time of effectuation of the DOCA. MYL proposes to fund the acquisition and ongoing operations through a mixture of existing cash reserves, consideration shares and a loan facility. The transaction will be funded through MYL's existing cash reserves, including funds to be repatriated from the sale of the Company's interests in the Bawdwin project, and a loan facility to be provided by Hartree to the Company's wholly owned subsidiary that holds the shares in Allegiance. MYL's involvement in the DOCA will be subject to shareholder approval, to be sought at an extraordinary general meeting of MYL shareholders to be convened following execution of the DOCA, as well as MYL receiving any other necessary regulatory approvals. The transaction is subject to approval of the Administrators obtaining an order under section 444GA of the Corporations Act, the board of directors of Allegiance being changed in accordance with MYL's directions, MYL and Hartree not receiving any objections and MYL shareholders approval and has been approved by Allegiance creditors.

Mallee Resources Limited completed the acquisition of Allegiance Mining Pty Ltd from Hartree Metals LLC on July 6, 2022.