SYDNEY, AUSTRALIA: Intra Energy Corporation Limited (ASX:IEC) has reached an agreement to transfer ownership of Intra Energy Tanzania Limited (IETL), which holds the Company’s Tanzanian Coal interests, to Mirambo Mining Limited MML), a Tanzanian company.
The transaction is subject to receiving approval from the Fair Competition Commission (FCC) of Tanzania and the shareholders of IEC.
MML has advised that they will also give the Government of Tanzania the opportunity to match the terms of the Sale and Purchase Agreement (SPA) agreed between IEC and MML under similar conditions should they so desire.
The transaction consists of 100% of the shares in IETL being transferred for US$2.0 million (which includes settlement of loans from IEC to IETL), paid in two equal tranches, the first having now been received by IEC and the second tranche within 90 days upon IEC shareholder approval.
Commenting on the divestment of IETL, Managing Director, Ben Dunn, said: “This sale confirms IEC’s previously stated ambition in 2019 to exit from the production of fossil fuels and transition into the exploration, development and operation of mineral properties in Australia and Africa.
IEC will now focus on its recently granted copper-gold exploration lease in NSW and its investment in gold exploration in Mozambique, as well as identifying opportunities in the battery and new energy mineral sectors.
Negotiations have been conducted in good faith and we thank MML for their willingness to embrace this opportunity and bring a prime resource of coal under Tanzanian ownership. The Directors would like take this opportunity to thank our loyal shareholders who have supported the Company throughout this transition period.”