Andromeda Metals Ltd (ASX:ADN) has provided an update on its sale of the Drummond Epithermal Gold Project as the company divests non-core assets to focus on the commercialisation and development of The Great White Project, a construction-ready kaolin project in South Australia.
In October 2022, Andromeda shareholders were advised that the company had agreed to sell the Drummond project to Rush Resources Ltd — via the disposal of subsidiary Adelaide Exploration — for around $250,000 worth of fully paid ordinary shares in Rush.
The agreement was conditional on Rush listing on the ASX. However, rather than directly listing on the ASX, Rush is now to become a subsidiary of ASX-listed Trigg Minerals Ltd.
As a result, rather than receiving shares in Rush as consideration for the sale of Drummond, Andromeda will instead receive shares in Trigg to the value of $250,000 and reimbursement of all Andromeda’s costs incurred in respect of the Drummond tenements (from August 1, 2022, until June 30, 2023), up to an amount of $45,000, excluding GST.
Shares in Trigg will be issued at the price equal to the 5-day volume-weighted average price of Trigg shares for the five trading days up to completion of the sale.
Andromeda will also receive a non-refundable upfront payment of $27,000 in cash and will receive a cash refund of $7,500 in respect of the environmental bonds for the project once the sale is complete.
The binding agreement between Rush and Trigg and the sale of Drummond to Rush will occur simultaneously, subject to satisfaction of a number of conditions precedent by September 30, 2023.
CEO and managing director Bob Katsiouleris said: “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.”