Black Fire to sell Pilot Mountain for $1.6m

Black Fire Minerals has entered into a sale agreement for its Pilot Mountain tungsten project in the US state of Nevada to South Australian-based Thor Mining for about $1.67 million.

Black Fire and Thor had entered into a term sheet agreement in June for the sale of the project, which was subject to due diligence and shareholder approval.

Thor said the acquisition would be settled through the issue of about 418.7 million shares at an issue price of 0.4 cents per share.

In July, Thor shareholders approved the share issue, but the acquisition still remains subject to Black Fire obtaining approval from its shareholders.

“We understand Black Fire are currently finalising preparations for a general meeting to seek the required shareholder approval and a further announcement will be made in due course,” Thor said in a statement.

Last month, Black Fire finalised an $810,000 share placement to complete its reverse takeover of mobile game developer Animoca Brands Corporation.

The takeover was valued at $US5 million.

Black Fire shares remained unchanged at 1.8 cents per share at 2pm.