JOHANNESBURG (miningweekly.com) – ASX-listed Malachite said on Wednesday that it was proceeding with the sale of its Conrad silver project, in New South Wales, to fellow-listed Silver Mines.
Malachite already received a A$50 000 initial option payment and would receive a second payment of A$50 000 before June 30. On completion of the transaction, Silver Mines would pay $350 000 to Malachite and issue shares to the value of A$125 000.
Malachite previously said it had resolved to sell the Conrad project as the money generated from the sale would provide more value to the company if it was deployed to test underground exploration potential at the Lorena gold project, in Queensland.
Malachite would retain an interest in the Conrad project through a net smelter return royalty.
Meanwhile, Silver Mines announced a four-for-one renounceable rights issue at a price of A$0.001 to raise up to A$2.8-million before costs. Rights issue subscribers and shortfall participants would also receive an attaching option with every two shares subscribed for, exercisable at A$0.003 and two-year expiry.
The funds raised from the offer would be used to close the Conrad acquisition.