Don't we have $2.1 million coming our way for the sale of Corunna Downs?
Gondwana Resources Limited announced that it has entered into a agreement with Atlas Iron Limited (ASX:AGO) to sell its interest in the Corunna Downs Iron Prospect in the Pilbara for AUD 2.1 million in cash, to be paid in three tranches.
The agreement is in the form of a staged 12-month exploration option for 100% of Gondwana's interest in the Corunna Downs and adjacent tenements, namely Exploration Licences E45/2585, E45/3320, E45/3321, E45/3322, E45/3323, E45/3324, E45/3579 and E46/803 located in the East Pilbara, WA.
The principal terms of the agreement includes: total consideration of AUD 2.1 million in cash paid in three tranches (AUD 350,000 on signing, AUD 350,000 six months after signing and AUD 1.4 million on exercise of the option and transfer of the tenements to Atlas); Gondwana to retain a royalty of AUD 1.13 per ton for all iron ore mined; Atlas to retain a right to buy back the Gondwana royalty for AUD 0.20 per ore reserve ton; Gondwana to retain a royalty of 1.5% of the gross proceeds of sale of other minerals; and Atlas to assume obligations to Adelaide Prospecting Pty Ltd in respect of Adelaide’s free-carried 10% interest in certain of the tenements
GDA Price at posting:
30.0¢ Sentiment: Buy Disclosure: Held
