Legacy Minerals to sell Mulholland Project to focus on central NSW portfolio

ASX-listed explorer Legacy Minerals (ASX:LGM) is selling its Mulholland Tin-Nickel-Rare Earth Element (REE) Project in central New South Wales for $305,000.

The company reports the sale of Mulholland allows it to focus on its 6 other wholly owned projects, including the flagship Black Range Epithermal Project and Bauloora Epithermal Joint Venture (JV) Project with Newmont Corporation (NYSE:NEM).

The company reports the sale of Mulholland allows it to focus on its 6 other wholly owned projects

Under the sale, unlisted company Karawara Minerals will make a cash payment of $105,000, with $30,000 to be paid upon the completion of the deal and $75,000 will be paid once Karawara is listed on the Australian Securities Exchange (ASX), targeted for Q3 2023. Additionally, Karawara will issue $200,000 worth of shares to Legacy at $0.10 per share within 7 days of the completion date.

Legacy says the $305,000 sale consideration takes into account an independent consultant’s evaluation of the project’s value, as well as the alignment of the project within Legacy’s portfolio and Karawara’s minimum expenditure commitments required to keep the tenement in good standing.

If Karawara does not achieve ASX admission within 2 years of the completion date, Legacy will be able to acquire the Mulholland tenement from Karawara at market value.

Legacy reports the divestment of Mulholland allows it to tighten its focus on its Black Range, Bauloora, Cobar, Rockley, Fontenoy, and Harden projects, which combined cover 2,259.1km-square of granted and pending exploration licences. The company will use the funds from the divestment to explore the 6 projects and for working capital.

Legacy is appearing at Mines and Money Connect Melbourne today (14 June 2023) and tomorrow.

The Mulholland Project hosts tin and nickel occurrences with trends up to 2.6km defined by drilling, with significant intercepts including 44m @ 0.45% nickel. Legacy has not conducted any on-ground exploration activities at the project.

Legacy Minerals is an ASX-listed gold, copper, and base metals explorer with a portfolio of assets in the Lachlan Fold Belt of New South Wales.

Karawara Minerals is an unlisted public company that plans to use cash flow from the restart of its Broula Magnetite Mine to fund critical minerals exploration in central New South Wales. The company is initially focused on its rare earth, copper, and gold projects and is targeting to be listed on the ASX in Q3 2023.

Write to Harry Mulholland at Mining.com.au

Images: Legacy Minerals Holdings Ltd
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.