Catalina Resources, an Australian mineral exploration and mine development company, has executed an asset sale agreement with KoBold Tjantjuru for the divestment of its rights, titles and interest in the Kookynie West Project.

The project includes the Golden Chimney exploration tenement (E40/378).

Catalina noted that the asset sale agreement (ASA) remains conditional until KoBold completes its due diligence to its satisfaction and formally notifies Catalina of its intention to proceed with the acquisition.

This move aligns with Catalina's strategic focus on high-priority projects and the continuous evaluation and prioritisation of its project portfolio.

Under the terms of the agreement, KoBold will make several non-refundable cash deposits to Catalina.

These include A$40,000 ($26,394) within ten business days of the agreement's effective date, A$50,000 by the first anniversary, A$60,000 by the second anniversary, and A$255,000 by the third anniversary.

Upon completion of the exploration rights transfer, KoBold will pay Catalina a purchase price of A$405,000, subtracting any previously paid non-refundable deposits.

Additionally, Catalina will receive a 1% net smelter return royalty from KoBold, with the option for KoBold to buy back half of this royalty for A$1,000,000.

During the period from the effective date to the completion date or termination of the agreement, KoBold is responsible for keeping the exploration rights in good standing.

This includes fulfilling legal obligations such as taxes, rents, rates, minimum expenditure obligations, assessments, and other similar charges, as well as meeting the work expenditure obligations associated with the exploration rights.

The Kookynie West tenements are situated 50km south of Leonora, adjacent to Genesis Metals' Ulysses-Orient Well project and Metalicity’s Kookynie project. Gold mineralisation is found within differentiated granophyric units located in dolerite.