Andromeda Metals will sell its Moonta and Alford copper-gold projects in South Australia to EnviroCopper (ECL).
The transaction is to be carried out by Andromeda’s subsidiary Peninsula Resources, and EnviroCopper’s subsidiary Environmental Metals Recovery (EMR).
The sale includes a 100 per cent interest in Andromeda’s Moonta project area, excluding the Moonta porphyry project area, of which a 90 per cent interest will be sold.
Also included in the sale is a 100 per cent interest in the company’s Alford project area and all information, rights and obligations held by Peninsula relating to the projects.
EnviroCopper is set to pay Andromeda $50,000 in cash and 203,008 fully paid ordinary shares in ECL, representing five per cent of current issued capital in the company.
Andromeda will also receive royalties equal to 10 per cent of operating cashflow from the Moonta ISR joint venture, which covers only the northern part of the project, up to $15 million.
The company will also receive 10 per cent operating cashflow of the broader Moonta project up to $15 million.
Following successful completion of a site environmental lixiviant test (SELT) within the project area, Andromeda will also receive either $100,000 in cash or 101,504 fully paid ordinary shares in ECL, at its discretion.
EnvioCopper will also pay a further $150,000 in cash following the granting of a mining lease.
“The sale of these assets continues our consistent approach to implementing our corporate strategy, through 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.
The company has been making significant moves in support of its Great White project of late, locking in deals with Traxys and Hallett Group for its halloysite-kaolin products, as well as the sale of its Drummond gold project to Trigg Minerals last month.