SYDNEY, AUSTRALIA: PNX Metals Limited (ASX: PNX) has agreed to divest the Moline project in the Northern Territory to Sovereign Metallurgical Pty Ltd for a total consideration of up to $3.0 million, plus refund the existing tenement bond of approximately $300,000.
The Moline project is located approximately 65km east of the Company’s Fountain Head and Hayes Creek development.
PNX Managing Director James Fox said: “The proposed divestment of a non-core asset realises immediate value for PNX and allows the Company to focus on the development of its 100% owned Fountain Head gold, and Hayes Creek gold, silver and zinc projects located in the Pine Creek region of the Northern Territory.
In addition to the waiver of $700,000 payable with respect to the Glencoe project, PNX will retain significant future value by way of a Net Smelter Returns Royalty of 1% over gold/silver and 2% over any other metals produced, and cash, or shares in any listing transaction of up to a further $2.25 million, at our election, upon transfer of Moline title, which is to occur within the next 18 months.
We look forward to continuing with a significant program of exploration and development activities on our core projects. Diamond drilling has been completed at Glencoe and an updated Mineral Resource is pending. Planning is underway for a larger RC drill program at Glencoe which will start after the NT wet season and when ground conditions improve.”