Great Western Exploration (ASX:GTE) Sells Yandal West Gold Project
Agreement Overview
Great Western Exploration Limited (GTE) has entered a binding agreement to sell its Yandal West Gold Project to Albion Resources Limited (ASX: ALB). This all-scrip transaction aims to allow GTE to concentrate on its upcoming exploration programs at other projects including Oval, Oval South, Sumo, and Juggernaut.
Financial Considerations
Albion will provide a gross consideration to GTE consisting of 22,222,222 fully paid ordinary shares, valued at A$1,000,000, and 30,000,000 performance rights. The completion of this agreement is expected in January 2025, subject to Albion’s shareholder approval and necessary deeds for the transfer of interests in the tenements.
Executive Comments
Shane Pike, Managing Director of Great Western Exploration, commented, “We are therefore delighted to have reached an agreement with Albion Resources, which is well-funded and has the dedicated resources to progress the significant potential of the Project.” He emphasised that this transaction will allow GTE to focus on its high-impact drilling programmes while retaining an interest in future exploration success through its shareholding in Albion.
Performance Rights Milestones
The performance rights are linked to specific milestones, including Albion declaring a minimum of 250,000 ounces of contained gold and announcing a Decision to Mine. These milestones have set expiry dates within five years from the date of issuance, ensuring GTE maintains exposure to the project’s development.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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