PERTH (miningweekly.com) – ASX-listed junior Hannans Reward has inked an agreement to sell its West Australian exploration database to a subsidiary of fellow-listed Neometals.
Under the terms of the agreement, in circumstances where subsidiary Reed Exploration used the database to identify exploration targets, Reed would hold a 20% interest in the tenements on trust for Hannans, with Hannans being free-carried through to a decision to mine.
Once a decision to mine has been made, Hannans could elect to contribute to expenditure to maintain its 20% interest in the projects, or to convert to a 2% net smelter royalty interest.
Hannans told shareholders that the transaction would enable the company to remain exposed to exploration activities in Western Australia without any requirements to fund exploration.
The database included all exploration data complied by Hannans in Western Australia since 2002.