LONDON (Alliance News) - Strategic Minerals PLC said Monday it entered into an agreement for the sale of certain tenements, identified as gold targets, to Great Southern Mining Ltd.
The miner said that the sale of the tenements, currently owned by its subsidiary Central Australian Rare Earths Pty Ltd, or CARE, is for AUD145,000.
The amount will be satisfied by AUD100,000 in cash, plus 1.0 million Great Southern shares to be issued to CARE at a price of AUD0.045, worth AUD45,000.
Strategic Minerals Managing Director John Peters said: "As a result of the ongoing evaluation and rationalisation of the CARE tenements, the board has decided that the tenements identified as gold targets are not in line with the company's strategy of pursuing battery-related metals and the sale of these assets allows Strategic Minerals to focus future exploration on nickel sulphides, cobalt and rare earth elements."
Strategic Minerals shares were trading up 4.5% at 1.38 pence each on Monday.
Strategic Minerals (SML)