Phosphate Australia (ASX:POZ) shares are set to climb after the $3.9 million sales of the Tuckanarra Gold Asset in Western Australia to gold producer Monument Mining (TSX-V:MMY).
In a market where cash is king, the consideration will net $2 million in cash, and $1.9 million in Monument Mining shares (10 million shares at $0.19).
POZ will allocate the cash component to potential future acquisitions, exploration and general working capital.
The cash will add to POZ's cash balance of $1.7 million at the end of June 2014.
The acquisition is subject to satisfactory completion by MMY of due diligence and receipt of TSX Venture Exchange acceptance.
MMY have already paid to POZ a non-refundable deposit of A$50,000, and both parties have signed an agreement for sale of the Tuckanarra Gold Project to MMY.
The transaction is expected to be completed by the 24 October 2014.
Musgrave Cu-Ni-PGE Project
POZ wholly-owns the Musgrave Cu-Ni-PGE Project in Western Australia, which has a tenement holding of 786 square kilometres.
There is interest in the area due to the renewed focus on the giant Nebo-Babel Ni-Cu-PGE Project which is only some 14 kilometres to the south of POZ tenement E69/3191.
POZ is currently seeking a partner(s) to assist with the exploration and development of the Musgrave project, with discussions ongoing.
Add to My Watchlist
What is My Watchlist?