Apex Minerals yesterday agreed to sell its wholly-owned Aphrodite Project near Kalgoorlie to unlisted Aphrodite Gold (AGL) for approximately $7.5 million.
AGL will pay Apex $5 million in cash and provide 11 million fully-paid shares, amounting to a 20% stake.
Apex will also receive 5.5 million options to subscribe to fully-paid ordinary shares at 20 cents each at any time until 31 December 2013.
AGL has paid a $500,000 deposit and will pay the remainder in November this year.
According to Apex, AGL will make an initial public offering in early-2010.
The remaining cash component will be paid from a seed capital raising, which is currently being arranged.
The company said it decided to sell Aphrodite in order to focus on its Wiluna operations.
Apex will shortly undertake a rights issue to pay off debt and raise around $50 million to fund its mine development program and provide working capital.