Andromeda Metals Ltd (ASX:ADN, OTC:ANDMF) has completed the sale of its 25% stake in the Wudinna Gold Project to Lady Alice Mines Pty Ltd (LAM) and Cobra Resources Plc for A$500,000 in cash and A$1 million worth of Cobra shares in line with an earlier agreement.
Cash payment received
The company has confirmed that the sale and purchase has wrapped up and Andromeda’s wholly-owned subsidiary Peninsula Resources Pty Ltd has received $500,000 in cash, in addition to the 52,010,000 Cobra consideration shares issued in advance of completion.
The consideration shares are subject to escrow – subject to standard exclusions – until the earlier of:
- when LAM becomes the registered holder of the tenements applicable to the Wudinna Project (via tenement transfer or the subdivision process in section 30AA of the Mining Act 1971 (SA); or
- the date that is 12 months from the date of issue of the consideration shares.
Once the escrow ends, the consideration shares will be subject to standard orderly market provisions for a further 12 months, where if the company wished to sell the consideration shares, it would first need to notify Cobra and allow Cobra the opportunity to effect the sale via its brokers at market price.
The company also confirms that the call option for the consideration shares in favour of Cobra can no longer be exercised, as completion has occurred.