SYDNEY, AUSTRALIA: Cyclone Metals Limited (ASX: CLE), a mineral exploration and development company, has announced that it has entered into a binding term sheet for the sale of its non-core gold assets in Australia and New Zealand to Moosh Moosh Limited (Moosh), a BVI registered company.

The sale includes 100% interest in the Nickol River Gold Project tenements in Western Australia and the Longwood Range Gold Copper PGE Project, Mareburn Gold Project, Macraes South Gold Project, Drybread — Waikerikeri Gold Project, and Muirs Gold Project located on the North and South Islands of New Zealand.

The total consideration for the sale is $4m in cash or equivalent in shares in an ASX-listed or New Zealand-listed company, to be paid by Moosh on settlement. Cyclone will also retain a 1% net smelter royalty on minerals extracted from the tenements.

The sale is part of Cyclone’s strategy to focus on developing its flagship Block 103 Magnetite Iron Ore Project (Block 103), located in the Labrador Trough region of Canada. Block 103 is a world class iron ore project with a resource of 7.2 billion tonnes at 29.2% Fe.

Paul Berend, CEO of Cyclone Metals, commented: “This sale of non-core assets illustrates our commitment to the development of our world class iron ore project Block 103; whilst ensuring that our investors retain exposure to the upside of these gold assets via a royalty stream and/or equity stake. Both Block 103 and these gold assets will benefit from a dedicated management team and Board.”

Cyclone Metals Limited acquires Labrador Iron Pty Ltd for $5.4mn