Empire Metals executes sale-and-purchase deal on Eclipse lease interest

(Sharecast News) - Empire Metals said on Tuesday that it had executed a definitive sale and purchase agreement to sell its 75% interest in the Eclipse Mining Lease in Western Australia for AUD 0.75m.

The AIM-traded exploration and development company said its wholly-owned Australian subsidiary, Empire Metals Australia, agreed the sale of the non-core gold asset near Kalgoorlie on the terms previously announced.

The consideration comprised an AUD 50,000 non-refundable deposit already received and AUD 700,000 payable in cash on completion.

Completion remained subject to customary conditions, including ministerial approval.

Empire said the disposal was consistent with its strategy to divest non-core assets and focus capital and management resources on advancing the Pitfield Titanium Project in Western Australia.

Managing director Shaun Bunn said the transaction would allow the company to direct capital and management focus to Pitfield, which he described as "one of the largest titanium discoveries globally".

"Completion of the sale is expected in the near term, subject to satisfaction of the remaining conditions," Bunn said.

Empire originally announced in December that it had entered into a conditional sale agreement for its 75% interest in mining lease M27/153, held in joint venture with the owner of the remaining 25%.

The agreement included an exclusivity and due diligence period, later extended to allow the purchaser to complete analysis of assay results from a 10-hole, 514-metre reverse circulation drilling programme carried out at the project.

The company said the parties would now work towards satisfying the remaining conditions precedent, with a further announcement to be made on completion.

Empire added that it was continuing to review options for other non-core assets as it looked to accelerate development at Pitfield.

At 1249 BST, shares in Empire Metals were down 1.33% at 33.25p.

Reporting by Josh White for Sharecast.com.

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