Carnavale Resources (CAV), through its subsidiary Tojo Minerals, has signed an agreement with KoBold Tjantjuru to sell its 100% interest in the E40/394 licence, close to Leonora in Western Australia, for A$405,000 ($267,976).
This move is part of the company's strategy to focus on its core Kookynie and Ora Banda South gold projects, while capitalising on non-core exploration assets.
KoBold will make a series of non-refundable cash deposits to CAV over three years from the date of the agreement.
The initial payment of A$25,000 is due within ten business days of the agreement's effective date. Subsequent payments include A$35,000 on the first anniversary, A$45,000 on the second and A$300,000 on the third anniversary.
Additionally, upon the transfer of exploration rights from Tojo Minerals to KoBold, CAV will retain a 1% net smelter return royalty. KoBold has the option to buy back half of this royalty for A$1,000,000.
CAV CEO Humphrey Hale said: “We are excited to enter this partnership with KoBold, who has an experienced corporate team that is looking to exploration success in Western Australia. The transaction will allow CAV to continue our aggressive focus on the Kookynie and Ora Banda Gold Projects in Western Australia, whilst allowing us to share in the upside with KoBold on one of our non-core assets.”
The completion of this asset sale is contingent upon KoBold's satisfaction with legal and technical due diligence on the Leonora tenement and obtaining all necessary third-party consents and approvals.
KoBold reserves the right to terminate the agreement at any time at its discretion with written notice to CAV.
