Impact Minerals has sold 75 per cent interest in its Commonwealth Project in the Lachlan copper-gold province of New South Wales.
The principal terms of the sale, which is to Burrendong Minerals, an unrelated public company looking to list on the ASX, are:
- A non-refundable option fee of $25,000 for an eight-week exclusivity period to complete a Share Purchase Agreement (SPA) and Joint Venture Agreement
- On execution of the SPA, Impact will receive a non-refundable payment of $250,000 cash
- Following execution of the SPA, Burrendong will have nine months to complete a listing on the ASX
- Upon listing, Impact will receive a further $250,000 cash, a 19.9 per cent interest in the newly-listedcompany and will also retain a 25 per cent interest in the project
- The project will then operate under an Incorporated joint venture with Burrendong to sole fund exploration until the earlier of the first $5 million of expenditure or a decision to mine
- Impact shareholders will be entitled to a priority right to subscribe for up to $3 million worth of shares
Impact Minerals managing director Mike Jones said the sale was 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 WA 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,” he said.
“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.”