Desert Metals Limited (ASX:DM1) entered into a binding agreement to acquire CDI Resources Limited for $1.93 million on December 4, 2023.In consideration for the Acquisition, the Company has agreed to issue the shareholders of CDI a total of 75 million fully paid ordinary shares in the capital of the Company. Tony Worth and Keith Murray will resign as directors of the Company with effect from Settlement of the Acquisition. Accordingly, on completion of the Acquisition, the Board will comprise Non-Executive Chair Mark Stewart, Managing Director Robert Stuart, and Director Stephen Ross.

Settlement of the Acquisition is conditional upon the satisfaction of the following conditions precedent; issuance of shares is subject to shareholder approval; Completion of financial, legal and technical due diligence on CDI by the Company, to its satisfaction; CDI having completed the acquisition of a 51% interest in Smart Mineral Exploration Côte d?Ivoire SARL (SMEX), which holds 100% of the flagship Tengrela South Gold Project; Key CDI Vendors procuring the agreement of the remaining CDI Vendors to sell their shares in CDI to the Company; DM1 having received firm commitments from sophisticated and professional investors for placement of fully paid ordinary shares in the Company at an issue price of $0.0325 per share to raise not less than $2.5 million; DM1 receiving shareholder approval for Settlement to occur; DM1 obtaining all necessary regulatory, shareholder and third-party approvals to allow the Company to lawfully complete the Acquisition; and no material adverse change in the circumstances of DM1 or CDI prior to Settlement.