News: Exterra Resources to net $7 million from WA gold project sale

Exterra Resources (ASX:EXC) should trade higher after entering into a $7 million Project Sale Agreement for its Linden Project in Western Australia with Fortuna SL Mining Pty Ltd.

Exterra shall receive consideration of $7 million cash in three tranches.

The first tranche of $100,000 has been received, with another $150,000 due today, and the remaining $6.75 million due by Wednesday 5th August this year.

Fortuna will also grant Exterra a 2% gross royalty on the Mining Property, and a 1% gross royalty on the Fortitude Tenements, which are currently under an Option to Purchase Agreement;

Fortuna is also bound to undertake a resource and regional drilling program at their expense, to be completed by 30 May 2015; and complete an updated JORC compliant resource and reserve for the Second Fortune deposit by 15 July 2015.

This transaction provides Exterra with ample funding to actively explore its remaining exploration projects and seek new opportunities.

Prior to this transaction, Exterra was capitalised at under $3 million, so the sum being received is significant.