Olympio Metals Ltd (ASX:OLY, OTC:COPGF) has completed the sale of the Mulwarrie Gold Project near Menzies in Western Australia to Labyrinth Resources Ltd for up to $1.375 million.
Labyrinth, through its wholly owned subsidiary Orminex West Pty Ltd, has executed the option to acquire the project.
After receiving the $50,000 cash option fee, Olympio has received a further $100,000 cash and $225,000 in Labyrinth shares, based on a 10-day VWAP.
Divestment upside
This divestment provides Olympio with immediate cash, continued exposure to success through shareholding in Labyrinth and potential future value upside based on success.
A further milestone payment of $1 million, to be paid in cash or Labyrinth shares at Labyrinth’s election, is due upon a JORC-2012 compliant mineral resource in excess of 250,000 ounces of gold being defined within the Mulwarrie tenements at a minimum grade of 1.40 g/t gold.
Focus in Canada
Olympio is ramping up its exploration focus in Canada with approvals being finalised to begin detailed exploration at its new Dufay Copper-Gold Project in Quebec.
The company expects drilling to begin in January 2025 at the highly prospective project upon receipt of approvals.