Sandfire Resources (ASX:SFR) has executed a binding sale and purchase agreement with Catalyst Metals (ASX:CYL) for the Old Highway Gold Project in Western Australia.
As part of the deal, Catalyst Metals, which has a market capitalisation of $1.32 billion, will pay $32.5 million comprising $2.5 million cash as a deposit and $30 million cash upon completion.
Both companies have agreed to work collaboratively to complete the transfer of accountability for the DeGrussa aerodrome to Catalyst, whereby Sandfire will retain access to meet its future requirements.
Sandfire, which has a market capitalisation of $4.57 billion, says the transaction remains subject to satisfying customary conditions precedent.
CEO Brendan Harris says this announcement marks the culmination of an extensive sales process.
“The sale of the Old Highway Gold Project increases the likelihood of its future development and the potential for the project to deliver positive outcomes for all stakeholders, including traditional owners, the local community and state government,” Harris says.
The Old Highway Project was extensively drilled and studied by Sandfire during the 2020s. The sale will contribute to the company’s rehabilitation costs at the DeGrussa Copper-Gold Mine.
Sandfire Resources’ DeGrussa Mine is now in care and maintenance with its progressive rehabilitation to be conducted over the coming decades.
Write to Aaliyah Rogan at Mining.com.au
Images: Sandfire Resources
