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Montezuma Mining Company realises value from non-core asset

Montezuma Mining has a strategy of divesting non-core assets.
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The focus is now on Butcherbird and Pinnacles

Montezuma Mining Company Ltd (ASX:MZM) has divested the Yamarna Project for $150,000 in cash to Gold Road (North Yamarna) Pty Limited.

The deal also has Gold Road agreeing to pay Montezuma a discovery payment of $7.50 per resource ounce on future discoveries within the area covered by E38/2889.

Gold Road must prepare a resource statement on at least an annual basis and pay the discovery payment on each troy ounce of gold added to the resource within 45 days of the update being finalised.

Analysis

This transaction provides Montezuma with free-carry on any future discoveries, delivering a potential upside for no risk.

Montezuma now continue to advance its commercialisation activities at the high purity Butcherbird Manganese Project, the Pinnacles Cobalt Project      as well as other key portfolio assets.

The company remains well-funded with $4.2 million in cash at the end of June 2017, and listed investments of circa $7 million.



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