Gold Mountain (ASX:GMN) has entered a binding agreement with Gold Crane Mining to sell its Papua New Guinea-based assets for $2 million.
Gold Crane will pay a $300,000 deposit for the asset sale. Only $100,000 of this deposit is refundable if the buyer chooses to back out of the sale.
After completing due diligence at the assets, Gold Crane will pay Gold Mountain a further $1.1 million. The remaining balance will be paid at the completion of the sale.
The parties will be required to complete numerous conditions within three months of the binding agreement, including due diligence.
The assets will be transferred to Gold Crane within one month after completing these conditions.
Gold Mountain says it will use the funds raised from this sale to streamline exploration activities at its Brazilian projects.
Gold Mountain is focused on developing Brazilian-based rare earth, lithium, and copper projects to drive the world’s energy future.
Write to Maddison Elliott at Mining.com.au
Images: Gold Mountain
