PERTH (miningweekly.com) - Junior Shaw River Manganese has entered into a tenement sale agreement to sell off its noncore gold and base-metals assets in Western Australia.
Shaw has signed an agreement with private company Kalamazoo Resources, under which the unlisted company would acquire Shaw’s interest in a number of tenements, in exchange for a 33% share interest in Kalamazoo.
Kalamazoo was currently assembling a portfolio of tenements, and was intending to list on the ASX. If the company was not admitted onto the ASX within 24 months, Shaw would have the right to reacquire the tenements by refunding Kalamazoo’s expenditure on the tenements.
The tenement packages being sold include the Mount Minnie group, the Parry Range group, Atlas Iron’s Pearana tenement, where Shaw holds the rights for gold and base metals, and the Farrell Well group of exploration licences.
Shaw said this week that the transaction followed the recent review of its Australian tenement holdings, and reflected the company’s focus on its Otjozondu manganese project, in Namibia.
The sale of the projects would reduce Shaw’s yearly tenement obligations by up to A$647 000, allowing the company to remain leveraged to future exploration success by virtue of its new shareholding in Kalamazoo.