Emu (ASX:EMU) is selling its subsidiary Coruscant Minerals to fund exploration at the Yataga Copper Project near Georgetown in North Queensland.
The sale will include Emu’s holding of the Badja Gold Project, which is located in Western Australia, for a total consideration of $3.51 million.
The company will receive an initial deposit of $514,721 upon execution of the agreement, followed by the next $800,000 at completion of the buyer’s due diligence.
After the buyer successfully produces 5,000 ounces of gold from the Badja Project, Emu will collect another $1.2 million, before the remaining $1 million from an additional 5,000 ounces of gold produced.
On the condition that the buyer sells the project before completion of the agreements, the final two payments will be due immediately.
Emu described the buyer as “a Western Australia based private company intending to fast-track the development of the Badja Gold Project”.
Meanwhile, the company will shift its focus to developing the Yataga Project, currently holding an 83% stake in the project which Emu intends to expand under its next exploration program.
Emu is an Australian precious and base metals explorer focused on uncovering new copper discoveries to benefit investors and shareholders.
Write to Maddison Elliott at Mining.com.au
Images: Emu
