Perth-based mining hopeful Aragon Resources has sold its fully-owned subsidiary, Territory Phosphate, to Northern Territory-based uranium explorer Rum Jungle Resources.
Perth-based mining hopeful Aragon Resources has sold its fully-owned subsidiary, Territory Phosphate, to Northern Territory-based uranium explorer Rum Jungle Resources.
Under terms of the agreement Rum Jungle will pay Aragon $1 million and 16,000,000 Rum Jungle shares, currently trading at 0.32c per share, while Aragon will escrow 50 per cent of its shareholding for a minimum of one year.
Aragon has also agreed to nullify its joint venture farm-in agreement between Territory Phosphate and Rum Jungle, and will maintain exposure to the Ammaroo and Barrow Creek phosphate projects by taking a substantial shareholding in Territory.
Aragon managing director Paul Benson said in a statement released to the ASX: "this agreement gives Aragon significant additional exposure to the exciting and broader commodity base of potash, phosphate, uranium and base metals assets of Rum Jungle."
"It puts ownership if the Ammaroo and Barrow Creek phosphate prospects under one roof which gives opportunity for Rum Jungle to advance development of the prospects in a simpler structure with all holders strategically aligned."