ORION Minerals said today it had reached agreement with Evolution Mining, a Sydney-listed gold business, to sell its Connors Arc Project in the Australian state of Queensland, for $2.5m in cash and a 2% royalty on net smelter returns to a ceiling of $5m.
The company said the sale was in order to focus on its core exploration properties in South Africa which includes the Prieska Zinc-Copper Project in the country’s Northern Cape province, and other prospective areas base metal targets, including “the advanced” Jacomynspan Nickel-Copper-Cobalt Project.
Conditions apply including winning indicative approval for the transfer of properties from the Queensland Government Department of Natural Resources, Mines and Energy. If the department approves the transfer, Orion will receive $1.5m in cash upfront with the balance paid in later installments on additional department approvals regarding the land.
Either party can reverse out of the deal if acquisition of the tenements is not completed before October 31.
