Rafaella Resources Limited (Rafaella) has completed the sale of the Sandstone gold exploration project (Sandstone) located in Western Australia to private gold exploration company, Westar Resources Ltd (Westar).
The Sandstone Project is located 640 kilometres north-east of Perth and 450 kilometres north-north-west of Kalgoorlie.
According to Rafaella, the decision to sell Sandstone followed a review of its portfolio in which the Company decided that the disposal allows it to focus on fast-tracking the development of the flagship Santa Comba tungsten project and progressing the prospective McCleery polymetallic exploration project.
The original terms of the disposal required a $50,000 cash deposit followed by the issuance of $100,000 in Westar shares upon a successful initial public offering.
Given the ongoing COVID-19 pandemic and the challenges in completing an initial public offering (IPO), Westar has elected to conduct a private fundraising to undertake the next steps of its strategy.
Rafaella has accepted an amendment to the terms of the disposal whereby the full consideration has been met through the issuance of Westar shares at the current private placement pricing.
As a result, Rafaella has now received 3,000,000 shares in Westar at the recent fundraising price of $0.05/share giving the Company a 5 per cent interest.
Rafaella’s Managing Director, Steven Turner, commented: “The sale of the Sandstone Project is further demonstration of management’s ability and determination to deliver its stated objectives.”
“The Company is focussed on the near-term release of an updated JORC Resource Report soon to be followed by the Santa Comba feasibility study.”
“Rafaella Resources is pleased with the completion of the Sandstone sale and the amended terms that give the Company an increased exposure to an exciting junior gold exploration company that has achieved rapid progress in building a credible portfolio,” Mr Turner added.