FeOre Limited (ASX:FEO) signed a memorandum of understanding to acquire Quangas Poly Ltd for $23 million on July 22, 2014. FeOre paid $10 million a refundable deposit upon signing of the agreement and remaining $13 million will be paid on satisfying the conditions. The transaction is subject to due diligence, consummation of private placement and third party consents, regulatory and FeOre shareholders approval, the transaction is also subject to FeOre raising funds to finance the purchase price. The memorandum of understanding will terminate if the conditions are not satisfied within 6 months.

As of January 20, 2015, the terms of the memorandum of understanding were amended and as per the amended terms, FeOre Limited will pay $17.1 million in cash and will transfer an entity which has a value of $5.7 million for sale shares and sale loan. The purchase price includes refundable deposit of $10 million and the balance to be paid on completion. The date to satisfy the conditions was extended to 8 months from the date on which the memorandum of understanding was signed. FeOre Limited will raise $3.5 to $5 million through share issue to finance the transaction and will pay the balance of the cash consideration from existing cash reserve. FeOre Limited will change its name to Sagalio Energy Limited on completion of the transaction. The transaction is also subject to shareholder approval of FeOre Limited. As of January 21, 2015, the Board of FeOre Limited recommended its shareholders to approve the transaction at the shareholders meeting. As of February 13, 2015, the shareholders of FeOre Limited approved the transaction. Kalikova and Associates acted as legal advisor for FeOre Limited. Computershare Investor Services Pty Limited acted as registrar for FeOre Limited.