PERTH (miningweekly.com) – ASX-listed Poseidon Nickel has scrapped a A$3-million deal with fellow-listed GTI Resources over the Windarra gold rights, in Western Australia.
The two companies in January agreed that Poseidon would transfer the Windarra gold rights to GTI Resources, with the payment to be made in stages.
Poseidon said on Tuesday that the companies in March agreed to extend the due diligence period until May 28, in return for GTI agreeing to pay a nonrefundable extension fee of A$100 000.
As GTI has not paid the first consideration amount of A$978 00 due under the deed, the companies have now mutually agreed to terminate the transaction, with Poseidon telling shareholders that it would consider whether to market the rights to others, or to exploit the opportunity itself.