Alice Queen (ASX:AQX) has agreed to sell its non-core New South Wales exploration licence to Alkane Resources (ASX:ALK) for $900,000 cash.
Alice Queen’s 90%-owned subsidiary Monzonite Metals has entered into a binding agreement to divest exploration licence EL8646 at Yarindury to Alkane Resources.
Managing Director Andrew Buxton says the divestment allows Alice Queen to focus resources on its flagship Horn Island Gold Project in Queensland.
“We’re pleased that the company has reached this agreement with Alkane Resources, allowing us to secure value from a non-core asset, while directing further attention and capital towards our Horn Island Gold Project in Queensland,” Buxton adds.
“Following the recent progress made at Horn Island, including the release of the project definition study, exploration target, and the commencement of a new drilling program, the project represents the most compelling opportunity in our portfolio and requires additional focus as we advance it towards development.”
The transaction remains subject to conditions precedent, including due diligence by Alkane, regulatory approvals, and third-party consents including ministerial approval under the Mining Act 1992, if required.
If conditions are not satisfied within two months of execution, either party may terminate the agreement. The parties can extend this period by a further two months where delays result from obtaining approvals.
Completion is expected two business days after the final condition is satisfied or waived.
The divestment follows recent progress at Horn Island, where Alice Queen has released a project definition study and exploration target while commencing a new drilling program.
Alice Queen is an Australian gold exploration company with a portfolio that includes projects in Fiji and the Lachlan Fold Belt in NSW, alongside its flagship Horn Island Gold Project in Queensland.
Write to JC Villarba at Mining.com.au
Images: Alice Queen
