Andromeda Metals has announced it has completed the sale of its Queensland Drummond epithermal gold project to Rush Resources, a subsidiary of Trigg Minerals.
The company confirmed it has been allotted more than 29 million shares in Trigg in exchange for the reimbursement of expenses related to the sale of Drummond.
The shares are issued in addition to the upfront payment of $27,000 in cash and a cash refund of $7,500 in respect of the environmental bonds for the project.
“The sale of Drummond is consistent with our corporate strategy of divesting non-core assets to support the commercialisation and development of the Great White project,” Andromeda chief executive officer and managing director Bob Katsiouleris said.
The project’s sale to Rush Resources began in October 2022 when Andromeda entered into an agreement for an exchange of $250,000 worth of fully paid ordinary shares in Rush, on the condition Rush would be listed on the ASX.
Instead of listing directly, Rush became a subsidiary of Trigg Minerals, and Andromeda received the equivalent shares in Trigg.
Andromeda has now received Trigg shares to the value of the original $250,000, as well as $45,000 in reimbursement of all expenditure Andromeda incurred from the Drummond tenements from August 1 2022 until June 30 2023.
Andromeda also announced the sale of its remaining 25 per cent interest in the Wudinna gold project in South Australia’s Eyre Peninsula to Cobra Resources.
“This announcement, in addition to the recent announcement on the sale of Drummond epithermal gold project, demonstrates our strategic focus remains squarely focused on securing the funding required to support a final investment decision for the Great White project being made, and the commencement of construction,” Katsiouleris said.
The company will receive $500,000 in cash as consideration for the project, as well as shares in Cobra to the value of $1 million.
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