Shares in exploration junior Bass Metals have doubled in value after the company secured a deal to clear its debts and undertake new work.
In a statement Bass said it had secured a deal to sell its subsidiary Hellyer Mill Operations to Ivy Resources for $11 million.
The company said upon completion of the sale it would “clear its debts, relaunch exploration, and undertake new acquisition assessments”.
The company also said the funds would allow it to pursue LionGold Corporation in the courts for alleged damages related to a share sale agreement last year.
A $600,000 first payment has already been made to Bass, and the company said it expected the full funds to be transferred by 20 February.
The company's subsidiary, HMO, owns the Hellyer Tails gold resource, processing plant, and mine lease in Tasmania.
Ivy said once it had acquired the assets it aimed to fast track a feasibility study to recover gold and silver from Hellyer Tails.
Since reaching highs in 2011, Bass shares have since plummeted, and the company has struggled through a number of difficulties after closing its Fossey Mine last year.