PERTH (miningweekly.com) – Junior Bass Metals has signed a conditional term sheet to dispose of its Tasmanian projects to London-listed NQ Minerals.
In exchange for its tenement and mining interests held in Tasmania, Bass Minerals will receive a 1% net smelter royalty on an any future sales from the tenement, for a period of 20 years from completion of the transaction, with the company also to be relieved of all future liabilities associated with all the tenements and existing agreements.
Furthermore, Bass will receive bonds and other refunds in relation to the tenements worth some A$150 000, with NQ Metals to reimburse Bass for all costs incurred at the Tasmanian assets from the date of signing the term sheet, and the final completion of the sale and purchase agreement.
“The sale of the company’s Tasmanian assets provides a number of tangible benefits to the company and shareholders,” said Bass CEO Tim McManus.
“In the short-term, we reduce expenditure and additional receive a substantial return of cash via bond funds. Additionally, the royalty stream from this agreement could ultimately provide an additional revenue stream to bass.”
McManus said that the transaction would also allow the company to move forward and concentrate on its primary strategy of delivering shareholder value through the optimsiation and expansion of its Graphmada graphite mine, in parallel with continued exploration of its tenement package in Madagascar.