SYDNEY, AUSTRALIA: Minbos Resources Limited (ASX: MNB) has entered into a binding Agreement with ALS (Hong Kong) Limited to divest its interest in its Madagascar Rare Earths Project.
Minbos holds an interest in the Madagascar Rare Earths Project through an Option Agreement with Tana Minerals Pty Ltd.
Under the agreement, Minbos has the exclusive right to acquire 90% of the shares in Tana’s subsidiary, MRE Mining (Mauritius) Limited, which included commitments for exploration expenditure.
The company has signed an Exclusivity Option for a period of 9 months from the Commencement Date (being 7th March 2022) through which ALS can complete due diligence on MRE Mining (Mauritius) Limited, the project tenements and other associated business and operational information.
At any time during the option period, ALS can exercise its option to acquire all the issued share capital in MRE Mining (Mauritius) Limited, which will trigger a payment to Minbos.
In addition, prior to exercise of the option and in order to maintain exclusivity, ALS is required to pay a monthly exclusive dealing fee.
The Board of Minbos has formally approved divestment of the Madagascar Rare Earths Project.