NT Minerals has signed a deal to sell the Redbank and Wollogorang copper projects to Golden Horse Minerals.
The $3 million transaction comprises $1 million in cash, and $2 million worth of CHESS Depositary Interests (CDIs) in Golden Horse.
It follows on from an exclusive option agreement, signed between the two companies in September last year. Under that deal, Golden Horse spent $5.1 million on exploration and also funded a pre-feasibility study for the projects.
The projects are now at an advanced exploration stage, but NT Minerals said they require significant further expenditure over several years before production is feasible. Rather than accept a substantial dilution of the company’s share in the projects, NT Minerals chose to take an indirect position through the Golden Horse CDI consideration.
The cash injection will also help NT Minerals focus on its ongoing Finnis River and Twin Peaks projects in Northern Territory and Western Australia, respectively.
The sale is subject to NT Minerals shareholder approval, with a general meeting expected to be held in early August.
The acquisition is Golden Horse’s second significant purchase in recent months. In December last year, the company bought into the Southern Cross tenements, a large gold project in Western Australia where Golden Horse is based.
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