Strategic Minerals Plc (LON:SML) (USOTC:SMCDY) said that, further to its announcement on 3 September, it has now exchanged contracts to sell to ASX-listed Great Southern Mining Ltd (GSN). certain tenements identified as gold targets, currently owned by its wholly owned subsidiary, Central Australian Rare Earths Pty Ltd (CARE).
The minerals company, which is actively developing projects prospective for battery materials, said it has received a non-refundable deposit of A$50,000 for the sale.
It added that the balance of the purchase price – A$50,000 in cash and issuance to CARE of 1,000,000 shares in GSN at an issue price of A$0.045 each - will be paid on completion of the transfer of title of the tenements, expected within one month.
On completion, the group said it will enter a voluntary escrow agreement ensuring that 500,000 GSN shares will not be sold prior to 30 December 2018 and the balance will not be sold prior to 30 June 2019.
John Peters, Managing Director of Strategic Minerals, commented: "The exchange of contracts on the gold-related CARE tenements is a welcome stepping stone to the improved overall management and exploration of the tenements within CARE's portfolio.”
He added: “Additional funding arising from this sale is likely to be applied to further drilling around Hanns Camp, notably at Hanns Camp South, which remains highly prospective for nickel sulphide mineralisation."