3D Resources Limited (3D Resources or the Company) has entered an agreement to sell its 80 per cent interest in the Halls Creek Copper project to joint venture partner Cazaly Resources Limited (Cazaly).
The Halls Creek Project comprises a granted Mining Lease 80/247 situated near the township of Halls Creek in the East Kimberley region of Western Australia.
The project covers the Mount Angelo Copper-Zinc (Cu-Zn) deposit.
It a Volcanogenic Massive Sulphide deposit that is partially oxidised at surface but overlying massive Cu-Zn sulphide mineralisation.
3D Resources and Cazaly have completed extensive exploration and drilling campaigns over the prospective tenement, with drilling that generated some good intersections and culminated in a JORC Resource being estimated in 2013 for the Mt Angelo North deposit.
The sale follows the recent announcement by 3D Resources to spin-out the Cosmo Newbery Gold project via an initial public offering (IPO).
According to the Company, the decision to divest non-core assets is a result of a strategic review of their operations, which will allow 3D Resources to focus solely on the development of its flagship Adelong Goldfield projects located in southern NSW.
Terms of Sale
3D Resources has executed a binding Sales Agreement with Cazaly which is subject to Conditions Precedent including:
- Receipt of Consent to the transfer from the Minister of Mines within 60 days;
- Cazaly assuming the obligations of the Company in respect to any royalties within 60 days; and
- The Company receiving all approvals (if any) required to sell its interest in the project within 60 days.
Under the terms of sale Cazaly is to pay the following sums:
- A non-refundable deposit of $50,000 within 5 days of execution of the Agreement;
- At Completion, a cash payment of $200,000; and
- Upon production of minerals in a commercial and saleable quantity, a further cash payment of $250,000.
Chairman of 3D Resources, Ian Hastings, commented that the divestment of non-core assets is a strategic decision that will provide additional cash of up to $1 million to deploy at the Adelong Gold project.
“The Company is aggressively developing Adelong and determined to move it into production as soon as possible,” Mr Hastings said.
“This additional cash will fast track early development work helping the Company maximise value from Adelong for our shareholders.”