The transaction allows Kingfisher to remain focused on its highly prospective
Mick Well REE and Chalby Chalby Lithium Projects.
Consideration for the divestment consists of:
2,000,000 fully paid ordinary shares in Black Cat based on a share price of $0.28 per share and valued at $560,000.
A 0.5% net smelter return royalty on gold and copper produced from all the Boolaloo tenements.
The consideration gives Kingfisher exposure to a near-term gold producer whilst retaining upside earnings potential in the form of gold and copper royalties.
Completion of the transaction allows Kingfisher’s exploration expenditure to be entirely directed to the Company’s Gascoyne projects.
Kingfisher Mining Limited (ASX:KFM) (“Kingfisher” or the “Company”) is pleased to announce it has executed a Binding Heads of Agreement with Black Cat Syndicate Ltd (ASX:BC8)(“Black Cat”) for the sale of a 100% interest in Kingfisher’s Boolaloo Project. The Boolaloo Project is located 35km from Black Cat’s Paulsens Gold Operation and adjoins Black Cat’s Ashburton tenure.
Kingfisher’s Executive Director and CEO James Farrell commented: “The sale of the Boolaloo Project, when completed, allows Kingfisher to focus its full effort on the continuing discovery of rare earth elements and lithium through our on-going exploration in the highly prospective Gascoyne region. The transaction provides Kingfisher with an investment in a near-term gold producer as well as royalties over copper and gold produced from the Boolaloo Project.
We wish Black Cat the best of luck with its future exploration campaigns in the area as it moves towards production at its Paulsens Gold Operation.”