MELBOURNE: Middle Island Resources Limited said Monday it has agreed to sell its Georgina and Barkly Project exploration licences in Australia’s Northern Territory to Alroy Copper Pty Limited, a move the company says will eliminate about $400,000 in annual forward funding obligations.

Under the agreement, the ASX-listed company will receive $50,000 in cash, the return of a $68,332 rehabilitation bond held by the Northern Territory Government, and a 1.5% net smelter royalty on copper produced from the tenements.

Alroy Copper also has paid approximately $84,364 in annual rent due on some of the tenements and will cover all other rental payments until completion, the company said.

The divestment covers nine exploration licences — seven granted and two pending — spanning roughly 4,200 square kilometers.

Middle Island Executive Chairman Daniel Raihani called the transaction “a sensible piece of portfolio housekeeping.”

“This transaction removes close to $400,000 per annum in forward funding obligations while retaining potential upside through a significant royalty,” Raihani said.

The company said the sale aligns with its focus on a recently acquired portfolio of exploration projects in Serbia’s Western Tethyan Mineral Province, which it says is highly prospective for gold and base metal deposits.

Middle Island’s Serbian portfolio comprises 13 licences, either wholly owned or held under agreements with a path to full ownership, covering approximately 590 square kilometers across the Bobija, Timok and Priboj project areas.

The company said no prior exploration or commercial-scale mining has been reported across the entire Priboj Project area, though numerous shallow copper workings within the Jermovac licence are reported to date to pre-Roman times.

The announcement was authorized for release by the Middle Island Resources Board.