Meteoric sells gold project for $30m

Meteoric Resources managing director Andrew Tunks will step down as managing director after overseeing the $30 million deal. 

West Perth-based explorer Meteoric informed the ASX this morning that it had executed a binding agreement to sell the Juruena Gold Project in Brazil for up to $30 million in staged cash payments.

The purchaser is Keystone Resources, a wholly-owned subsidiary of investment company Alchemist Investments. Both are incorporated in the Seychelles.

Consideration for the deal will be split into staged payments and a 2 per cent gross royalty capped at $2.8 million.

According to Meteoric, the new capital means it is fully funded for exploration at its Palm Springs in WA’s Kimberley region and allows it to consider further acquisitions.

With the deal in place, Meteoric managing director Andrew Tunks said he felt it was the right time to step down from his role.

“I am very proud of the work we have completed in firstly identifying then securing Juruena followed by our successful exploration of the Project over the past three years,” Mr Trunks said in a statement.

“Having delivered this result for shareholders, I feel this is the right time for me to step down from the position of managing director into a non-executive director role.

“I personally would like to thank shareholders and the Board for the opportunity to lead Meteoric since 2018.”

Meteoric Resources shares were up 35.7 per cent to trade at 1.9 cents.