Andromeda Metals has released an update on the sale of its Drummond epithermal gold project in Queensland.
The sale of the project to Rush Resources began in October 2022 when Andromeda entered into an agreement for an exchange of $250,000 worth of fully paid ordinary shares in Rush, on the condition Rush would be listed on the ASX.
Rather than listing on the ASX directly, Rush will now become a subsidiary of ASX-listed Trigg Minerals.
As a result, rather than receiving shares in Rush for the sale of Drummond, Andromeda will instead receive shares in Trigg.
Andromeda will receive Trigg shares to the value of the original $250,000, as well as $45,000 in reimbursement of all expenditure Andromeda incurred from the Drummond tenements from August 1 2022 until June 30 2023.
Andromeda will also receive an upfront payment of $27,000 in cash and will receive a cash refund of $7,500 for the environmental bonds for the project at completion of the sale.
The Drummond project has outcropping epithermal vein fields that are high-priority exploration targets. These vein fields show indications that the prospective crustal level for economic gold in epithermal environments remains preserved.
Completion of both the binding agreement between Rush and Trigg and of the for the sale of Drummond to Rush will occur simultaneously.
“The sale of Drummond is consistent with our corporate strategy of divesting non-core assets to support the commercialisation and development of the Great White project,” Andromeda chief executive officer and managing director Bob Katsiouleris said.
Located on the Eyre Peninsula in South Australia, the company’s Great White project contains several high-value deposits containing a naturally occurring blend of halloysite tubes and kaolinite plates.
Halloysite-kaolin is used in technologies such as air and water purification, soil remediation and battery technology. Andromeda hopes Great White can become a key supplier of minerals essential to the world’s transition renewable energy.