Junior explorer Asra Minerals has sold its Tarmoola pastoral lease to goldmining mid-tier Red 5, in a move designed to support its upcoming drilling and exploration campaigns.
Junior explorer Asra Minerals has sold its Tarmoola pastoral lease to goldmining mid-tier Red 5, in a move designed to support its upcoming drilling and exploration campaigns.
Asra, which has interests across multiple commodities, said the $3 million price from the divestment would be used for programs at its Mt Stirling and Kookynie gold projects.
Drilling programs began at both projects last week.
The company said an element of the proceeds would also be put towards additional operational savings.
Executing the transaction were Tarmoola Holdings, a wholly owned subsidiary of Asra, along with Red 5’s subsidiary, Greenstone Resources.
The pastoral lease is situated close to Red 5’s flagship King of the Hills gold mine, near Leonora.
On August 12, Paul Summers-chaired Asra told the market that negotiations between both parties in relation to the deal had been ‘progressing well’ and that Red 5 had already paid an initial non-refundable deposit of $250,000, which the company had received.
Asra will receive an additional cash payment of $2.75 million following completion of the deal.
“The agreement with Red 5 allows us to retain the existing Tarmoola exploration camp and facilities, which is critical for Asra to house our exploration team as we embark on an extensive drilling campaign in the region,” Mr Summers said.
“The pastoral lease sale will also significantly boost Asra’s treasury as we progress our drilling programs at Mt Stirling and Kookynie, which will deliver a steady flow of results over the next six months.
“The landscape for exploration companies in the current market is difficult, irrespective of the buoyant gold price, yet this sale has placed Asra in a strong position as we launch into our gold exploration strategy.”
Asra also provided an update regarding the issuing of performance rights incentives.
As of 1.53pm WST, the West Perth-based junior was trading at $0.006 cents. As part of its long-term incentive plan, Asra said it plans to issue 160 million performance rights across directors, employees and contactors, in order to grow shareholder value.
In July, Asra told the market that Rob Longley had resigned as managing director, with Mr Summers praising him for leaving the company in a strong position.
