Carnavale Resources Ltd (ASX:CAV), through wholly owned subsidiary Tojo Minerals Pty Limited, has entered an Asset Sale Agreement for the sale of 100% of licence E40/394, close to Leonora in Western Australia, to KoBold Tjantjuru Pty Ltd.
Under this agreement KoBold has an exclusive right to acquire 100% of Tojo’s interests in the Leonora tenement for $405,000 while Carnavale will retain a 1% net smelter return royalty.
To continue aggressive focus
This sale forms part of Carnavale's strategy of crystallizing value from non-core exploration assets while maintaining a strong focus on gold exploration and development at the Kookynie Gold Project and Ora Banda South Gold Project in Western Australia.
CEO Humphrey Hale said: “We are excited to enter this partnership with KoBold, who has an experienced corporate team that is looking to exploration success in Western Australia.
“The transaction will allow CAV to continue our aggressive focus on the Kookynie and Ora Banda gold projects in Western Australia, whilst allowing us to share in the upside with KoBold on one of our non-core assets.”
Consideration
KoBold will make the following non-refundable cash deposits to the company:
- $25,000, within 10 business days of signature of the agreement (Effective Date);
- $35,000, on or before the first anniversary of the Effective Date;
- $45,000, on or before the second anniversary of the Effective Date; and
- $300,000, on or before the third anniversary of the Effective Date.
KoBold will grant CAV a 1% net smelter return royalty upon completion of the Exploration Rights Transfer from Tojo to KoBold, half of which may be bought back by KoBold at any time for consideration of $1 million.
Agreement terms
For the duration of the agreement, starting on the Effective Date and ending on the Completion Date (or termination of the agreement), KoBold agrees to keep the Exploration Rights in good standing and will do so by:
The agreement is conditional on completion of legal and technical due diligence on the Leonora tenement to the satisfaction of KoBold and obtaining all other necessary third-party consents and approvals.