PERTH: Moho Resources Limited (ASX: MOH) has announced the sale of its Empress Springs Project in Western Queensland to Qld Aus Graphite Pty Ltd (QAG) for a total consideration of approximately $1.258 million.
The transaction includes an initial cash payment of $258,000 upon completion, with an additional $1 million deferred payment due 12 months later. The deferred payment is secured by QAG’s parent company as guarantor.
As part of the deal, Moho will retain a 1% net smelter royalty (NSR) on the project, with the terms documented in a formal royalty deed. The sale is expected to be finalized 10 days after the fulfillment or waiver of conditions precedent outlined in the agreement.
The Empress Springs Project, acquired by Moho through a joint venture with IGO in 2018, includes three mineral exploration permits and additional adjoining tenements. Despite fulfilling earn-in requirements and expanding the project’s land size, Moho cited high exploration costs and administrative burdens as reasons for the sale. The company stated that the project no longer aligns with its financial strategy and capacity.
Peter Christie, Chairman of Moho, emphasized that the sale supports the company’s strategic goal of realizing value from its existing portfolio while exploring new opportunities. “This transaction strengthens our balance sheet and allows us to focus on projects that will deliver greater value to our shareholders,” Christie said.
Moho Resources, an Australian exploration company focused on gold and other minerals, is chaired by Peter Christie, a seasoned businessman and accountant. The company’s board includes Michael Pereira and Bryce Gould, both experienced corporate advisors.
The sale is contingent on several conditions, including Moho obtaining necessary consents and approvals under the joint venture agreement, the execution of the royalty deed, and QAG’s satisfactory completion of due diligence investigations.