Cyclone sells off non-core assets
PERTH (miningweekly.com) – Junior Cyclone Metals has struck a A$4-million deal to divest of its noncore assets in Western Australia and New Zealand, allowing the company to focus on the development of its Block 103 magnetite/iron-ore project, in Canada.
The company on Friday announced that it had struck an agreement with BVI-registered Moosh Moosh to divest of its interest in the Nickol River gold project tenements, in Western Australia, the Longwood Range copper/gold/platinum group metals project, the Mareburn gold project, the Macreas South gold project, the Drybread-Waikerikeri gold project and the Muirs gold project, in New Zealand.
In exchange, Cyclone would be paid A$4-million in cash or equivalent shares with an ASX-listed company or New Zealand-listed company and would be entitled to a 1% net smelter royalty on minerals extracted from the tenements.
The transaction was subject to the completion of a due diligence by both parties, and the payment of A$200 000 to Cyclone for maintaining the tenements in good order during this period.
"This sale of noncore assets illustrates our commitment to the development of our world-class iron-ore project Block 103; while 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,” said Cyclone CEO Paul Berend.
Cyclone in June reported a 7.2-billion-tonne maiden Joint Ore Reserves Committee-compliant resource for its Block 103 iron-ore project.
Cyclone’s deal with Moosh Moosh comes just days after ASX-listed European Lithium sold off its own noncore assets to the BVI-registered company in a similarly structured transaction.
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