TNT Mines plans to sell its Aberfoyle and Great Pyramid tin and tungsten projects in north-eastern Tasmania to private Canadian company TinOne Resources.
Perth-based TNT will shift focus to North America, where it owns the Pelley Ridge zinc project in Montana, after completing the deal.
Aberfoyle is 57 kilometres south-east of Launceston and consists of three main prospects, including the Storey’s Creek tungsten prospect, the Aberfoyle-Lutwyche-Kookaburra tin and tungsten mines and the Royal George tin deposit.
Great Pyramid is a previously unmined property 12km south-west of St Helens where tin mineralisation begins close to surface.
The deal is subject to conditions, including TinOne completing due diligence, securing funding to complete initial payments and final board approval.
TinOre will pay TNT $1.1 million for the projects over four stages, with $50,000 to be paid on signing the definitive transaction agreement within 30 days.
A further $250,000 will be paid on the six-month anniversary of signing and a further $300,000 on the 12 month anniversary, with the final $500,000 in cash or shares to be paid on the 24-month anniversary.
Under the terms, TinOne has agreed to assume all ongoing project costs and keep the licenses in good standing from the date of execution of the transaction documents until completion of the acquisition.
“Once the transaction is finalised, all the company’s resources will be fully focused on imminent drilling program at the Pelley Ridge zinc project in Montana, and the ongoing identification of other complementary assets in North America,” TNT executive chairman Brett Mitchell said.
The companies have signed a binding letter of intent that provides for a 30-day exclusivity period for TinOne to complete due diligence and formal binding documentation for the acquisition.