Reed Resources has sold off its Comet Vale gold project, located near Kalgoorlie in Western Australia, for a fraction of the price it was offered last year.
Accepting a $2 million offer from an undisclosed party, the deal is two thirds less than Crest Minerals’ offer which fell through last year.
The Comet Vale sale will include Reed’s subsidiary Sand Queen Gold Mines.
Commenting on the deal Reed managing director Chris Reed said it came at a good time.
“With the company fully focused on advancing its Advanced Minerals projects, it is the appropriate time to sell Comet Vale,” he said.
“This is consistent with the company’s strategy of realising value for its suite of attractive non-core assets.”
The mine has been in care and maintenance since June 2010.