LONDON (ShareCast) - (Sharecast News) - Producing mineral company Strategic Minerals has signed an in principle agreement in relation to the divestments of certain tenements that had been identified as gold targets, currently owned by its wholly-owned subsidiary Central Australian Rare Earths, to ASX-listed Great Southern Mining subject to a one week due diligence and effective transfer of title, it announced on Monday.
The AIM-traded firm said it had agreed to arrange the sale of the E38/2829, E38/2442, E38/2587, and E38/2856 tenements to GSN.

It confirmed the tenements in the agreement were currently 100% owned by its subsidiary CARE.

Total consideration for the sale would be AUD 145,000, to be paid by way of AUD 100,000 in cash and the issue to CARE of 1,000,000 shares in GSN at an issue price of 4.5 Australian cents.

A non-refundable deposit of AUD 50,000 would be deposited on exchange of contracts, and the cash balance and the shares would be provided on the transfer of title.

Strategic said 500,000 GSN shares would be subject to a voluntary escrow until 30 December, with the balance voluntarily escrowed until 30 June 2019.

The board explained that the sale of the tenements would channel the company's focus for CARE on nickel/cobalt and rare earth exploration.

"As a result of the ongoing evaluation and rationalisation of the CARE tenements, the board has decided that the tenements identified as gold targets are not in line with the company's strategy of pursuing battery-related metals and the sale of these assets allows Strategic Minerals to focus future exploration on nickel sulphides, cobalt and rare earth elements," said Strategic Minerals managing director John Peters.

"The company looks forward to updating the market shortly on its plans to undertake further drilling around Hanns Camp, notably at Hanns Camp South, which is showing good signs of nickel sulphide prospectivity."

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE