Jameson Resources will divest its Ora Banda gold assets near Kalgoorlie to Subiaco-based Winchester Resources, which is planning a $2 million initial public offer.
Subiaco-based Jameson said the deal is conditional on Winchester completing the IPO and listing on the Australian Securities Exchange within six months of the deal.
In its prospectus, Winchester said it plans to list on the ASX on November 17. It is offering 10 million shares at 20 cents each
Under the deal, Winchester will pay $10,000 and issue 750,000 full paid shares to Jameson.
Winchester will have nearly 26 million shares on issue on its listing day.
"The board of Jameson considers the Ora Banda project to be a non-core asset of the company, and the divestment will see the project receive the attention it deserves whilst allowing Jameson to focus upon the recommissioning of the Basin thermal coal mine in British Columbia," it said.
Winchester has also struck agreements with Murchison Resources Pty Ltd and Scott Wilson to acquire additional tenements that form the Ora Banda project, which is also prospective for nickel.
On the board of Winchester is non-executive chairman Michael Fry, managing director Brett Wallace, executive director Ian Prentice and non-executive director David Morris.
Winchester's IPO is due to open next Wednesday.
