LONDON (Alliance News) - Strategic Minerals PLC on Thursday said it agreed to sell four tenements, identified as gold targets, to Australia-listed Great Southern Mining Ltd.
The exploration company said E38/2829, E38/2442, E38/2587, and E38/2856 tenements are all owned by its subsidiary Central Australian Rare Earths Pty Ltd
Strategic Minerals said it has already secured a non-refundable deposit of AUD50,000, about GBP27,505. The total purchase price comprises of AUD50,000 in cash and AUD45,000 in Great Southern Mining shares.
On completion of the transaction, Strategic Minerals said it will enter a voluntary escrow agreement ensuring that 500,000 Great Southern Mining shares will not be sold prior to December 30 and the remaining shares will not be sold prior to June 30, 2019.
"The exchange of contracts on the gold related Central Australian Rare Earths tenements is a welcome stepping stone to the improved overall management and exploration of the tenements within Central Australian Rare Earths's portfolio," said Managing Director John Peters.
"Additional funding arising from this sale is likely to be applied to further drilling around Hanns Camp, notably at Hanns Camp South, which remains highly prospective for nickel sulphide mineralisation," added Peters.
Shares in Strategic Minerals were trading 5.3% lower on Thursday at 1.52 pence each.
Strategic Minerals (SML)