(Alliance News) - Richland Resources Ltd said Monday the sale of its Capricorn sapphire project in Australia to Fura Gems Inc has received shareholder approval.
Under amended terms, Fura will pay an option fee of CAD25,000, about GBP15,500, to Richland, and then CAD125,000 in cash on closing the deal.
It will also allow Richland to draw a further CAD125,000 under an existing loan agreement with another party, with Fura paying the lender's interest costs up to CAD3,000.
Previously, Fura was to pay CAD150,000 as an option payment and then USD185,000 in cash and 4.9 million Fura shares.
The deal will make Richland a cash shell and it will look to secure debt or equity funding to buy a new mining project.
Richland Resources closed 5.3% higher on Monday at 0.10 pence each.