(Alliance News) - Richland Resources Ltd on Thursday said it has entered into an option agreement to sell the Capricorn sapphire project located in Queensland, Australia.
The Australian gemstones explorer has entered into an option agreement with Canada-listed Fura Gem Inc for the Capricorn Project.
Under the agreement, Fura has - for an option fee of CAD150,000 or GBP89,920 - been granted an option valid until July 31 to acquire Richland Corporate Ltd, the owner of Capricorn project.
The consideration payable by Fura to buy the project would comprise USD185,000 cash and 4.9 million new common shares in Fura. The consideration also includes further payments for expenses and guaranties provided by Richland Resources for the project.
Richland Resources intends to use the net proceeds of the proposed disposal to repay loans and for additional working capital. The company also separately intends to secure additional funding through debt and equity fundraising.
Shares in Richland Resources were up 6.3% at 0.09 pence each on Thursday afternoon in London.
