Northern Mining (ASX:NMI) has sold its Georges Reward Project on tenement E25/268 to Metals X (ASX:MLX) for a cash consideration of $4.5 million.
Tenement E26/268 is 79% owned by NMI with the remaining 21% owned by Balagundi Gold Pty Ltd under a joint venture agreement.
The project has a JORC Inferred Resource of 22,500 ounces of gold and NMI believes the selling price is excellent when compared to recent asset sales within the goldfields in Western Australia.
Having considered various options to commercialise the project under current global economic conditions, the company believes that the best option is to realise immediate cash returns by selling the project outright.
This will also de-risk the project from uncertainties due to boundary constraints with a neighbouring tenement.
The proceeds of sale will boost the company’s cash position to $9 million and the company will concentrate on developing and growing its other tenements and projects going forward.
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