South Australian copper junior Havilah Resources on Tuesday said that the transaction to divest North Portia was expected to close within the next two weeks, despite delays experienced with the completion of the required documentation and approvals.
The transaction to divest North Portia is taking place through the sale of the Benagerie mining lease (ML) to Broken Hill-based Consolidated Mining and Civil (CMC).
CMC has confirmed that the funds for the first payment of $1-million are immediately available to be paid upon closure.
The exchange and lodging of the bank guarantees for CMC, to take full responsibility for the rehabilitation obligations, has occurred, meaning that CMC has now replaced Havilah’s $1.2-million in bank guarantee obligations.
Havilah on Tuesday noted that it had no further exposure to rehabilitation liabilities on the ML.
Havilah announced the sale of Portia and Portia North – both copper/gold projects – to CMC in June, to free up its time and financial resources for its core projects. The junior is pursuing a copper and cobalt strategy.