LONDON (ShareCast) - (Sharecast News) - Producing mineral company Strategic Minerals has now exchanged contracts for the sale of certain tenements identified as gold targets, currently owned by its wholly owned subsidiary Central Australian Rare Earths (CARE) to ASX-listed Great Southern Mining (GSN), it announced on Thursday.
The AIM-traded firm initially announced an in-principle agreement for the transaction on 3 September.

It said it had now exchanged contracts for the sale of the E38/2829, E38/2442, E38/2587 and E38/2856 tenements to GSN.

Strategic also confirmed it had received a non-refundable deposit of AUD 50,000.

The balance of the purchase price, consisting of AUD 50,000 in cash and the issue to CARE of 1,000,000 shares in GSN at an issue price of AUD 0.045, would be paid on completion of the transfer of title of the tenements, expected within one month.

On completion, the company said it would enter a voluntary escrow agreement ensuring that 500,000 GSN shares would not be sold before 30 December, with the balance not being sold prior to 30 June next year.

"The exchange of contracts on the gold related CARE tenements is a welcome stepping stone to the improved overall management and exploration of the tenements within CARE's portfolio," said Strategic Minerals managing director John Peters.

"Additional funding arising from this sale is likely to be applied to further drilling around Hanns Camp, notably at Hanns Camp South, which remains highly prospective for nickel sulphide mineralisation."

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