West Australian gold exploration and development company Rox Resources (ASX: RXL) has entered a binding term sheet to sell its Mt Fisher Gold Project in Western Australia to High-Tech Metals Limited (ASX: HTM).
HIGHLIGHTS
- Rox enters Binding agreement to sell Mt Fisher to HTM for a combination of cash, equity and royalties including: Cash consideration of $1.5 million
- 1,000,000 fully-paid ordinary shares in HTM upon completion
- A 1.0% Net Smelter Return (NSR) royalty
- Deal completion is expected by late March 2025
- Divestment of non-core asset to strengthen cash reserves and support the development of its 100%-owned Youanmi Gold Project in WA
The agreement with HTM encompasses the sale of Rox’s legal or beneficial interest in the tenements set out in Schedule 1 (Tenements), including all mining and technical information relating to those Tenements.
The consideration payable to Rox for the Mt Fisher Gold Project comprises total cash consideration of A$1.5 million (comprising A$50,000 non-refundable exclusivity deposit and A$1,450,000 upon completion) plus 1,000,000 fully-paid ordinary shares in the capital of HTM at a deemed issue price of $0.15 per share to be issued at completion, with 12 months escrow.
HTM will also grant Rox a 1.0% Net Smelter Return (NSR) royalty over the Tenements (excluding E53/1319 and any parts of those Tenements described in Schedule 1 that are subject to an existing royalty payable to Aurora Gold Pty Ltd (Aurora Royalty)).
Completion is conditional upon HTM obtaining the prior approval of its shareholders to issue the 1,000,000 ordinary shares, pursuant to ASX Listing rule 7.1 and the parties obtaining all necessary approvals and consents.
Rox Resources’ Chief Executive Officer, Phillip Wilding, commented:
“We are pleased to have reached agreement with HTM to sell our non-core asset, Mt Fisher, which is consistent with our strategy to focus on advancement of our flagship 2.3Moz Youanmi Gold Project through DFS.
“Mt Fisher is a highly prospective tenement package, and we believe HTM is well-positioned to drive value and take the project forward.
“The sale of Mt Fisher would realise value for Rox shareholders by strengthening our balance sheet and retaining exposure to future upside through the HTM shares and 1% NSR royalty.”
