LONDON: Cloudbreak Discovery Plc (LSE: CDL) has finalized the sale of its U.S. assets to G2 Energy Corp., executing definitive contracts for the Masten Unit Energy Project in Texas, the company announced Friday.
Under the terms of the agreement, Cloudbreak will receive £50,000 upon signing and an additional £50,000 over the next five months. The transaction eliminates all current and future liabilities associated with the assets, including an immediate £75,000 outstanding liability.
In a parallel move, Cloudbreak raised £300,000 in gross proceeds through a placing of 120 million new ordinary shares at 0.25 pence per share. The funds were secured from a single strategic institutional investor and will be used to accelerate portfolio development and support general working capital.
Managing Director Tom Evans said the divestment and capital raise position the company to intensify its gold exploration efforts in Western Australia, particularly at the Darlot West project. “Western Australia is a Tier-1 gold exploration jurisdiction, and we are focused as a Board to leverage off our exciting Darlot West assets,” Evans said.
Evans emphasized the strategic advantage of operating in sterling, noting that the currency’s strength against the Australian dollar enhances on-ground exploration capacity. “This gives us a good competitive edge when competing for assets and spending money on the ground,” he added.
Cloudbreak is actively pursuing additional gold prospects in Western Australia, aiming to establish itself as a leading explorer and developer in the region.