Orion Gold NL (ASX:ORN) exercised an option to acquire Agama Exploration & Mining (Pty) Ltd for AUD 8.5 million on January 3, 2017. Out of AUD 8.7 million, AUD 3.2 million will be paid in cash, AUD 2 million in stock and AUD 3.4 million shall be paid for shareholders loan settlement . Shares issued to the vendors will be subject to a 6-month voluntary escrow period from their date of issue and 75% of the shares issued to the vendors will be subject to a 12-month voluntary escrow period from their date of issue. The transaction will be funded through convertible note issue of AUD 6.1 million. If certain South African regulatory approvals for the issue of shares to the vendors are not received prior to March 15, 2017, the consideration shares may be settled by cash payment to the vendors unable to obtain such approvals. The consideration shares are subject to regulatory and shareholder approvals. As of February 8, 2017 notice for shareholders meeting dispatched to consider the said transaction. The transaction is subject to Orion providing proof of financial capacity to complete the transaction, the issues of shares and unlisted options to the vendors being approved by Orion shareholders, where required by law, including the ASX listing rules, Orion providing or procuring finance for Agama, regulatory approvals and Agama disposing of all its assets and liabilities, other than the Prieska Zinc-Copper Project and the Marydale Project prior to settlement. Satisfaction of the conditions precedent to the acquisition will occur by no later than March 15, 2017, failing which the parties will be released from their obligations under the agreement. As of January 17, 2017, all conditions to the transaction are fulfilled. Transaction is expected to close prior to the end of March 2017.