PERTH (miningweekly.com) – The shareholders of ASX-listed junior Boadicea Resources have approved the sale of nine Fraser Range tenements to fellow-listed Independence Group.
The two companies in September this year struck the sales agreement which could see Independence pay a potential A$57-million plus royalties for the assets.
The transaction will include a A$5.5-million up-front, non-refundable cash payment to Boadicea and a A$1.5-million subscription to purchase 6.25-million Boadicea shares at 24c each.
A A$50-million cash payment would become payable to Boadicea on Independence making a discovery and declaring a resource at the tenure within a five-year period, with Independence also granting the junior company a 0.75% net smelter return on all revenue associated from mineral production at the tenure.
“The board thanks our shareholders for the overwhelming support of the asset sale. This marks a new chapter in the company, providing a substantial cash injection to accelerate exploration activities in the exciting Patterson Province and other tenements, while retaining upside participation from any discovery Independence makes in the Fraser Range tenements that are included in the asset sale,” said Boadicea’s MD Jon Reynolds.
The tenure up for sale includes the Symons Hill tenement, which is adjacent to Independence’s Nova mining lease, as well as tenements proximal to the Silver Knight and Mawson discoveries.