Austin Metals Limited (ASX: AYT) has announced a binding agreement to sell its Broken Hill tenement package in New South Wales to Kingfisher Mining Ltd (ASX: KFM). Austin Metals is a Gold and precious metals explorer focused on the prolific mining districts of Western Australia. This strategic move allows the company to concentrate its resources on advancing its core Western Australian gold assets, while retaining potential upside through its equity interest in Kingfisher.
The total consideration for the transaction is $400,000. This comprises $200,000 in cash and $200,000 in fully paid ordinary shares in Kingfisher. The shares will be issued at a price equal to the 5-day volume weighted average price calculated over the 5 trading days prior to the execution date.
The divestment includes Austin Metals’ 100% interest in eleven exploration licenses located in the Broken Hill region. Settlement is subject to customary conditions precedent. These include regulatory and shareholder approvals, procurement of third-party consents and assignments, and the extension or replacement of certain expiring tenements to the satisfaction of Kingfisher.
The transaction is expected to be completed in the near term, pending the satisfaction or waiver of all conditions. Austin Metals will continue to focus on its gold projects in Western Australia. The company anticipates that this divestment will enhance shareholder value by streamlining operations.
