Shree Minerals Limited (ASX: SHH, Shree or the Company) advises that the Company has executed a Sale and Purchase Agreement (SPA) with MetalsGrove Mining Ltd (MGM) for the divestment of its rights, title and interest in the farm-in and joint venture and shareholder agreement (JV Agreement) (Arunta Joint Venture) with Territory Lithium Pty Ltd.
The projects of the Arunta Joint Venture are the Box Hole, Edwards Creek and Bruce Gold Projects located in the Northern Territory. The tenements subject to these are EL 31225, EL32419 and EL32420.
In consideration for the acquisition of SHH’s rights, title and interest in the Arunta Joint Venture, MGM will make a cash payment of $50,000 to SHH and issue to SHH 4,750,000 fully paid ordinary shares (MGM Shares) in the capital of MGM at a deemed issue price of $0.20 each.
The SPA is subject to conditions precedent, including MGM being satisfied with its due diligence investigations, conditional approval being obtained from the Australian Securities Exchange (ASX) to admit the securities of MGM to trading on the official list of the ASX and necessary regulatory approvals or waivers pursuant to the ASX Listing Rules, Corporations Act 2001 or any other law to allow the Parties to lawfully complete the matters set out in the SPA.
At present, SHH does not intend to conduct an in-specie distribution of the MGM shares but notes that SHH shareholders will retain exposure to MGM while SHH holds the MGM Shares, which may be subject to ASX escrow upon the listing of MGM.
The sale of the Company’s interest in the Arunta Joint Venture allows the Company to focus its efforts on its existing high priority exploration projects in NSW and Western Australia and the recommencement of production and shipping of iron ore from its wholly owned Nelson Bay River Iron Ore Project in Tasmania.
