Australian company Cyclone Metals has agreed to offload its non-core assets in Western Australia (WA) and New Zealand, to BVI registered company Moosh Moosh.

Under the binding term sheet, Cyclone Metals will sell its interest in the Nickol River gold project tenements in WA, as well as 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.

The sale includes a 100% interest in tenements E47/3176, L47/565, L47/686, L47/687, L47/688, L47/689, M47/087, M47/127, M47/401, M47/421, M47/435, M47/455, M47/577, P47/1524 and P47/1812, which comprise the Nickol River Project in West Pilbara, WA.

Cyclone Metals will offload 100% interest in tenements PP60700, PP60707, PP60708, PP60709, EP60663, EP60671, EP60692, PP60693, EP60694 and EP61013 (pending grant) in New Zealand.

In exchange, Cyclone will receive A$4m ($2.73m) in cash or equivalent shares with an ASX or New Zealand-listed company.

Cyclone will also be entitled to a 1% net smelter royalty on minerals extracted from the tenements.

With the sale of non-core gold assets, Cyclone intends to focus on the development of its Block 103 Magnetite Iron Ore Project (Block 103), located in Canada's Labrador Trough region.

Cyclone Metals CEO Paul Berend said: "This sale of non-core assets illustrates our commitment to the development of our world-class iron ore project Block 103; whilst 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.”