Andromeda Metals Ltd (ASX:ADN) has actioned its corporate strategy of divesting non-core assets with the sale of the Drummond Epithermal Gold Project and the company’s 25% interest in the Wudinna Gold Project.
The sale will allow ADN to channel its attention and energy to the flagship Great White Kaolin Project, where the company is in the midst of securing financing ahead of a final investment decision, after which construction will begin.
Drummond Epithermal Gold Project
Andromeda will receive 29.5 million shares in Trigg Minerals Limited as consideration for the sale of Drummond. The shares were issued at 1 cent a share.
The company will also receive an upfront payment of $27,000 in cash and a cash refund of $7,500 for the environmental bonds for the project.
“The sale of Drummond is consistent with our corporate strategy of divesting non-core assets to support the commercialisation and development of The Great White Project,” Andromeda Metals CEO and managing director Bob Katsiouleris said.
“We continue working towards securing the funding required to support a final investment decision being made, to support the planned commencement of construction.”
Wudinna Gold Project
ADN will receive $500,000 in cash and $1 million in shares from Cobra Resources Plc for the sale of its remaining 25% interest in the Wudinna project.
In October 2017 Andromeda entered into a farm-in and joint venture agreement to progress the Wudinna Gold Project with Lady Alice Mines Pty Ltd (LAM).
In March 2019, LAM was acquired by Cobra, a company listed on the London Stock Exchange.
LAM earned a 75% interest under the farm-in agreement by expending $5 million in exploration funding for the potential development of gold and rare earth elements (REE) deposits.
The company has opted to acquire the remaining 25% interest in return for the consideration described above.
“This announcement, in addition to the recent announcement on the sale of Drummond Epithermal Gold Project, demonstrates our strategic focus remains squarely focused on securing the funding required to support a final investment decision for The Great White Project being made, and the commencement of construction,” Katsiouleris said.