PERTH (miningweekly.com) – ASX-listed Laneway Resources has completed the Stage 1 sale of its Ashford coking coal project, in New South Wales, to fellow listed Aus Tin Mining.
In exchange for a 40% interest in the project, Laneway has been issued a 20% shareholding in Aus Tin, which amounts to some 2.5-billion ordinary shares in the company.
Aus Tin would also be reimbursing Laneway some A$150 000 in costs incurred at the project since a binding term sheet was entered into between the companies last year.
Under the terms of the agreement, Aus Tin could acquire the remaining 60% interest in the project for a further A$7-million payment, consisting of A$2-million in cash and a further A$5-million in either cash or Aus Tin shares issued at a 20% discount.
On Aus Tin obtaining full ownership of the Ashford project, Laneway would retain a 50c/t royalty for every tonne of coal produced from the Ashford project, which has a current indicated and inferred resource of 14.8-million tonnes.
Laneway noted on Monday that the Stage 2 transaction was still subject to a number of conditions, including shareholder and third-party approvals.
Laneway told shareholders that through the transaction with Aus Tin Mining, the company’s shareholders would have exposure to other existing resource projects, including the Taronga tin project and the Mt Cobalt and Pembroke nickel, copper and cobalt projects.