PERTH (miningweekly.com) – ASX-listed Metallica Minerals has executed an option agreement to sell its noncore Boyne limestone project, near Gladstone, to an unnamed party for A$1-million.
The option term would be for a period of six months, but could be extended to nine months if regulatory approval was not required within that timeframe for reasons outside of the two parties’ control.
The agreement provided for a A$100 000 deposit to be paid within five business days of the execution of the agreement, while the remaining A$900 000 was due on the completion of the transaction.
If the buyer could not obtain the necessary regulatory approvals in time, 50% of the deposit would be refundable.
Metallica on Monday said the agreement was subject to a number of conditions, including Ministerial approval, Metallica formalising access and compensation agreements with landowners and landowner consent to assign the agreements to the buyer.
Metallica CEO Simon Slesarewich added that the agreement furthered the company’s dual strategy of divesting its noncore assets and focusing its resources on the development of its core assets such as the Esmeralda and Cape York projects.
The latest agreement comes hot on the heels of Metallica divesting of its Star and Ootann limestone projects, which delivered A$870 000 in revenues.