Lara Exploration and its partner Kiwanda Mines have entered into an agreement to sell their phosphate and coal interests in South America to Phillips River Mining.
The sale includes 19.9% interest in central Colombian coal producer Carbhid, an option of a 51% stake in Escalones coal mining rights, an option to earn up to 75% interest in the Pelaya coal property.
It also includes an option to acquire a 75% stake in the Bofox phosphate mining rights in northern Chile.
For the coal assets, Phillips River would pay an amount determined by an independent valuation after deduction of an initial A$450,000 ($415,404) payment to Lara through the issuance of shares.
Kiwanda, which already holds a 19.9% stake in Phillips River, will receive 75% of the issued shares, while Lara will receive the remaining 25%. The amount for the phosphate assets will also be determined by an independent valuation.
As per the terms, the Pelaya coal property, the Bifox phosphate property and the Ki phosphate property will become designated projects, and Phillips River will invest $5m in each of the projects over a four-year period.