ARAFURA SELLS MT PORTER GOLD PROJECT TO GLOBAL MINERAL RESOURCES
Australian rare earths company Arafura Resources Limited (ASX: ARU)(Arafura) today announces that it has executed a contract of sale for the Mt Porter-Frances Creek Gold Project (the Project) with Global Mineral Resources Limited (Global).
The consideration for the sale of the Project is a combination of cash and scrip. Under the terms of the sale agreement Arafura will receive A$1.5 million cash, 7.5 million fully paid ordinary shares in Global, and 7.5 million options exercisable at A$0.2
Global is a junior resources company focused on developing advanced exploration projects with a portfolio of gold and base metal projects in Australia. The transaction detailed above will be settled at the time of a successful ASX listing by Global, which is expected by mid year. The Mt Porter-Frances Creek Gold Project includes a 34,200 oz inferred and indicated JORC resource at Mt Porter, and gold exploration and development rights over several adjacent licences in the Frances Creek region of the Northern Territory.
Arafura Managing Director & CEO Dr Steve Ward said, ?We are very pleased with this outcome. It enables Arafura to realize value from one of our non-core assets in the near term as we focus on rare earths and our world class Nolans Project. As an emerging mineral exploration company Global is in a strong position to develop the Mt Porter Frances Creek Gold Project. We also look forward to being a significant shareholder in Global and, as such, we are positioned to capture more value as Global develops this, and other projects in their portfolio.
THR Price at posting:
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