Minotaur Exploration has sold its Saints and Leinster nickel assets to Auroch Minerals in a AU$1.5 million deal.
While other miners down under are eager to jump back on the nickel train, Minotaur Exploration (ASX:MEP) chose another avenue this week by selling its Western Australian nickel assets to Auroch Minerals (ASX:AOU).
Announced Tuesday (May 28), the deal involves a binding term sheet through which Minotaur has sold its Saints and Leinster assets to Auroch for AU$1.5 million. Minotaur will receive AU$1.4 million worth of shares in Auroch, along with AU$100,000 in cash.
Auroch will also pick up Minotaur’s wholly owned subsidiaries, Minotaur Gold Solutions and Altia Resources, which collectively own the tenements E36/899, E36/936, M29/245 and M29/246.
“Minotaur considers Auroch has the financial capacity, technical and operational expertise to further enhance the value of the Saints and Leinster assets through accelerated exploration and project development studies,” a statement from the company reads. “Minotaur is pleased to therefore retain an exposure to the project’s forward prospects through its Auroch holding.”
According to Minotaur, the fresh divestment comes as part of its strategy to focus on its base metals prospects in Queensland and South Australia.
One of the company’s assets in Queensland is the Eloise joint venture, which it shares with OZ Minerals (ASX:OZL,OTC Pink:OZMLF). The two companies recently revamped their agreement after OZ gained a 70 percent interest in Eloise through contributing AU$10 million to the project over three years.
The companies also recently collaborated on forming the Cloncurry Regional Alliance, which entails the partners working together exclusively on prospect identification and acquisition around the Cloncurry district, also located in Queensland.
Minotaur shares closed in the green on Tuesday, ending the day of trading on the ASX up 2.33 percent at AU$0.044. Auroch shares were also up on the ASX, closing 1.45 percent higher on Tuesday at AU$0.07.
As of May 24, nickel was trading at US$12,150 per tonne on the London Metal Exchange.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.