Mantle Minerals (ASX:MTL) has agreed to sell its wholly owned subsidiary, Mt Roe Mining, to Northern Star Resources (ASX:NST). According to the agreed terms, Northern Star will pay $13.5 million for five tenements located in Western Australia, near the Hemi deposit. Mantle Minerals is an Australian mineral explorer focused on developing gold and nickel projects in the Pilbara region of Western Australia. Northern Star Resources is a global-scale gold producer with operations primarily in Australia and North America.
Mantle plans to advance its Yule River exploration program following the sale’s completion, using geophysical targeting and drilling. Additionally, the company intends to begin drilling identified targets at Pardoo. Following initial drill results, Mantle Minerals will consider resource definition drilling and mining studies at both projects. The Yule River and Pardoo projects will continue to be operated by Mantle.
To expedite operations until the sale closes, Mantle is raising an additional $200,000. This will be achieved through firm commitments to issue 250 million shares at a price of $0.001 each. Shareholders will be eligible to receive one option for each share held, exercisable at $0.0015 until the expiration date, five years from issue.
The transaction allows Mantle Minerals to focus on its Yule River and Pardoo projects while providing Northern Star Resources with additional tenements in a strategic location. The raising of additional capital ensures Mantle Minerals can continue exploration activities without interruption.
