Junior Impact Minerals has agreed to divest a 75% interest in the Commonwealth gold/silver/base metals project, in New South Wales, to unlisted Burrendong Minerals.
Under the terms of the agreement, Impact would receive a non-refundable option fee of A$25 000 for an eight week exclusivity period in which to complete a share purchase agreement and joint venture agreement.
On completion of the share purchase agreement, Impact would receive a further A$250 000 cash payment, and Burrendong would have nine months in which to complete a listing on the ASX.
Upon its listing, Impact would receive a further A$250 000 in cash and a 19.9% interest in the newly listed Burrendong, while also retaining a 25% interest in the Commonwealth project.
““The sale of a 75% interest in our long-held Commonwealth project in New South Wales is a very good outcome for the company and its shareholders. It allows us to continue our strategic change in focus to the large and prospective portfolio of battery and strategic metals projects in Western Australia which we have put together over the past 18 months and in addition also gives Impact considerable exposure to the upside potential of the Commonwealth project into which we have invested financial and considerable intellectual capital,” said Impact MD Dr Mike Jones.
“We continue to believe that the project has a great future and we look forward to working with Burrendong to move the project forward upon listing.”