(Alliance News) - Panther Metals PLC on Wednesday said it conditionally agreed to sell its 30% interest in the Blue Mountain project in Queensland, Australia for GBP200,000 to ECR Minerals PLC.
The mineral exploration company, which is otherwise focused on Canada, said the Blue Mountain project comprises the Denny Gully gold project. If the conditions to completion are satisfied, payment to Panther Metals will be settled by the issue of 31.9 million ECR Minerals shares at a price of 0.6267 pence each.
Panther Metals said the proposed acquisition is conditional upon ECR Minerals obtaining Australian ministerial approval for the transfer of the tenements comprising the Blue Mountain project.
"I am delighted to see our residual holding in the Blue Mountain project go into ECR as they continue to build an exciting portfolio in Queensland. The project had become isolated from the broader Panther Metals portfolio, so commercially a disposal into an experienced team offers the greatest upside for Panther," said Panther Metals Chief Executive Officer Darren Hazelwood.
"Panther continues to strengthen our underlying business in a challenging market, with total disposals and cash into the business now exceeding GBP2 million thus far in 2023.
"At the same time, our confidence in our assets continues to grow; with the discovery of a new VMS camp on the Obonga greenstone belt; and the continued exploration success by Palladium One in whom global miner and trader Glencore has just announced a strategic equity investment, in close proximity to our 100% owned Dotted Lake property."
Shares in Panther Metals were up 4.1% to 2.92p each in London on Wednesday afternoon.
By Greg Rosenvinge, Alliance News reporter
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Panther Metals (PALM)