SYDNEY: Nelson Resources Limited said Monday it has agreed to sell two non-core Western Australian exploration projects, Woodline (Socrates) and Fortnum, in deals worth up to about $1.09 million.

The company said its wholly owned subsidiary, 79 Exploration Pty Ltd, entered into binding agreements to dispose of the assets. The purchaser of each project is not a related party.

Under the Woodline agreement, consideration is up to $1 million: $600,000 in cash and up to $400,000 tied to JORC gold resource milestones. The cash portion includes $100,000 payable on completion, $100,000 payable two months after completion, and $400,000 payable within 14 days of the grant of an extension of term for tenement E28/2633, or earlier under limited circumstances.

The deferred cash component includes $200,000 payable within 20 business days of a JORC Inferred Mineral Resource of at least 75,000 ounces of gold on the tenement, and an additional $200,000 within 20 business days of a JORC Inferred Mineral Resource of at least 150,000 ounces of gold, inclusive of the first milestone.

For Fortnum, consideration is $90,000 in cash: $10,000 on execution, $40,000 payable on completion, and $40,000 payable two months after completion.

Nelson said the transactions are subject to conditions customary for deals of this nature. Title and risk pass on completion, after which the purchaser is responsible for rent, rates, Mining Rehabilitation Fund levies and minimum expenditure on the tenement.

Non-Executive Chairman Gernot Abl said Woodline and Fortnum are no longer core to the company’s strategy.

“These sales crystallise value from non-core ground, bring cash onto the balance sheet and, at Woodline, keep the Company exposed to exploration success through the resource milestones,” Abl said. “That lets us put our time and capital into Gold Point and the rest of the portfolio.”

Nelson said the proceeds will allow it to focus on its Gold Point project in Nevada and other priority assets.

The company’s board approved the announcement for release.