Rare earths specialist Arafura Resources has agreed to sell a gold exploration project to a junior resources company.
Arafura said it had signed a sale agreement with Global Mineral Resources to sell its Mt Porter-Frances Creek gold project.
Under the deal Arafura will receive $1.5 million in cash, 7.5 million fully paid shares in Global and 7.5 million options in the company, exercisable at 25 cents each.
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Global plans on listing on the Australian Securities Exchange mid-year, at which time the transaction will be settled.
Mt Porter-Frances Creek, in the Northern Territory about 170km south-east of Darwin, has an indicated and inferred gold resource of 34,200 ounces.
Arafura managing director Steve Ward said the company was pleased with the outcome.
“It enables Arafura to realise value from one of our non-core assets in the near term as we focus on rare earths and our world class Nolans project,” Dr Ward said in a statement.
“We also look forward to being a significant shareholder in Global and, as such, we are positioned to capture more value as Global develops this, and other projects in their portfolio,” he said.