SYDNEY, AUSTRALIA: Coppermoly Limited (ASX: COY) has entered into a legally binding share purchase deed for the sale of all of the shares in its wholly owned subsidiary, Copper Quest PNG Limited to Ever Leap Services Limited for $500,000.

Copper Quest is the holder of Coppermoly Limited’s exploration licences in West New Britain in the Independent State of Papua New Guinea (PNG),

The proposed sale follows the outbreak of COVID-19 and resulting restrictions on travel and disruption to exploration activities over the last few years and will enable the Company to focus on its highly prospective grounds for copper gold and critical minerals in the Eastern Successions of Mt Isa, Northwest Queensland where management can more effectively progress exploration activities.

The consideration for the Proposed Sale comprises the buy-back and cancellation by the Company of approximately 1,955,024,388 fully paid ordinary shares in the Company (Shares) held (or to be held) by the Buyer and certain other major Shareholders and directors (Buyback), together with a cash payment to the Company of $500,000.

As such, the Proposed Sale will also help to address any perceived concentration of voting power in the Company, with the hope that this will facilitate greater interest and financial support of the Company from the Australian financial community, reducing financial reliance on a few key shareholders.

The Proposed Sale is subject to, among, other things, Shareholder approval and other usual regulatory approvals, further details of which are contained in the Key Term Summary contained in this announcement and will be further documented in a notice of meeting seeking Shareholder approval for the Proposed Sale, which is expected to be dispatched in late February/ early March.

Coppermoly Limited Managing Director, Dr. Wanfu Huang, said, “Having considered all of the options of progressing projects in PNG and Australia, the Board is pleased to reach an agreement with the major shareholders. This agreement would encourage the major shareholders to continuously fund the Company’s PNG projects, and allow the Company to focus on exploring our large tenement area in the prospective Eastern Succession of Mt Isa. Meanwhile it provides a significant opportunity for the Company to rebalance our share register to be more attractive to Australian investors”.