Godolphin Resources (ASX:GRL) will divest its 49% interest in the Calarie Project to Adavale Resources (ASX:ADD) for $380,000 worth of shares and options.
The company has executed a binding tenement sale agreement with Adavale to sell its stake in the project, located near Forbes in New South Wales.
The project comprises Exploration Licences EL8580 and EL8555 and Mining Licence ML739.
Under the agreement, Godolphin will receive 7,595,000 fully paid ordinary shares in Adavale at $0.05 per share, valued at approximately $379,750. The consideration shares are subject to voluntary escrow for six months from the date of execution.
The company will also receive 7,595,000 options exercisable at $0.10 per option and 7,595,000 options exercisable at $0.20 per option, both expiring 31 December 2029.
Managing Director Jeneta Owens says the deal offers an ‘attractive outcome for a non-core asset’ while retaining exposure to Calarie’s upside through Godolphin’s stake in Adavale.
“Importantly, the transaction sharpens our strategic focus on the Lewis Ponds Gold and Silver Project, where we believe Godolphin has the strongest opportunity to generate near and medium-term shareholder value,” Owens adds.
The divestment forms part of Godolphin’s strategy to rationalise its portfolio and focus on advanced gold, silver, base metal, and rare earth assets.
The long-dated option package offers leveraged exposure to Calarie’s upside and any material re-rating in Adavale’s valuation over time.
Godolphin Resources holds a portfolio of gold, silver, base metals, and rare earths projects in New South Wales’ Lachlan Fold Belt, including the Lewis Ponds Gold and Silver Project and the Narraburra Rare Earths Project.
Write to JC Villarba at Mining.com.au
Images: Godolphin Resources
