Australia-based NewPeak Metals has announced the sale of its Finland and New Zealand gold permits as part of the company’s strategic rejuvenation plan to focus on battery and critical metals.
The ASX-listed company on Monday announced a binding term sheet to sell 100% of its interest in its Finnish subsidiary companies to Canco – a Canadian unlisted private company, run by resource entrepreneur Emma Fairhurst.
It is understood that Canco would assign its rights from the private company into a publicly listed Canadian entity by transaction close on March 31.
As consideration for the sale, NewPeak will receive A$150 000 and C$500 000 in cash, C1-million in shares of the listed company and a milestone payment of C$1.5-million in cash or shares.
The sale follows in the footsteps of the sale of the Otago gold permits. On Friday, NewPeak announced it had entered into contractual agreements to sell its remaining 25% interest in its New Zealand gold mineral permits – Garibaldi and Raggedy Range.
NewPeak, together with its partner Neil Stuart (75% interest), has entered into an exploration permit acquisition agreement with Canada-listed KO Gold.
As consideration for the sale, NewPeak will receive C$125 000 in three KO Gold share issue tranches.
NewPeak still holds gold assets in Argentina. The company’s joint venture (JV) partner in the Las Openas gold project has rescinded its termination notice and the parties have elected not to enter into arbitration. Instead, they have agreed new terms to advance the venture, including transferring the Las Openas permit rights to a new JV company in which NewPeak holds 51%. The JV has agreed to sell 100% of the project and has engaged a corporate adviser to manage the sale process.
For the Cachi gold project, a JV company was established to hold the permit and advance the project through this new company. NewPeak (35%) and Tres Cerros Exploraciones (65%) will seek expressions of interest from others to invest in, or sell, the project.
Meanwhile, NewPeak is considering battery and critical metal projects in the Americas and Australia.