Shareholders of Victoria’s Boadicea Resources have approved the $7 million sale of its Fraser Range tenements to nickel miner IGO.
The deal was approved by shareholders during an online general meeting, held today.
IGO, which announced the deal early last month, holds around 13,500 square kilometres of ground in Western Australia’s Fraser Range.
The company will acquire nine tenements from Boadicea for $5.5 million in cash and $1.5 million in IGO shares. The deal includes Boadicea’s Symons Hill tenement, which neighbours IGO's Nova nickel-copper-cobalt mine.
Boadicea managing director Jon Renyolds said the company had received “overwhelming support” for the sale.
“This marks a new chapter in the company, providing a substantial cash injection to accelerate exploration activities in the exciting Patterson Province (Koongulla) and other tenements, whilst retaining upside participation from any discovery IGO makes in the Fraser Range tenements that are included in the Asset Sale,” he said.
Boadicea will receive a further $50 million in cash from IGO if it makes a discovery and declares a JORC resource on the tenure within five years post acquisition.
IGO will also grant Boadicea a 0.75 per cent net smelter return royalty on all production revenue.
Shares in IGO closed down 3.6 per cent to trade at $4.35, while Boadicea shares dived 31 per cent to close at 27 cents.