Resources & Energy Group (ASX:REZ) has executed a binding heads of agreement with Aureus Mining for the sale of its tenements and associated land located near Mount Mackenzie, Queensland.
The company previously has stated its intention to enter into joint ventures or sell the Mount Mackenzie Project and focus its activities on its East Menzies Project in Western Australia.
Following discussions with several parties the company has decided the best value for shareholders can be realised via an outright sale.
The key terms of the transaction are that Australian unlisted public company Aureus Mining will acquire the project tenements, landholding, and associated survey materials.
Resources & Energy Group will receive $750,000 by 26 October 2023; $750,000 upon receipt of approval to commence mining activities or upon Aureus listing its securities on a recognised stock exchange; and an ongoing royalty of 1% of the market value of gold extracted from the project.
The divestment will allow Resources & Energy Group to focus on exploration for gold and critical metals, and production of gold at its East Menzies Project.
The transaction for the sale of the MM Project is subject to completion of due diligence by Aureus.
Approval by Resources & Energy Group’s shareholders is not required.
Write to Adam Orlando at Mining.com.au
Images: Resources & Energy Group