Proactive’s Tylah Tully breaks down ‘Just the Facts’ of the latest news from Moho Resources Ltd.
Moho's signed a binding Sale and Purchase Agreement with Queensland Australian Graphite (QAG) for the sale of its Empress Springs Project in Western Queensland. The transaction is valued at up to A$1.258 million.
Under the agreement, Moho will receive an initial cash payment of A$258,000 upon completion, with a further A$1 million payable as a deferred cash payment after 12 months.
The company will also retain a 1% net smelter royalty (NSR) on the project, with details to be outlined in a formal royalty deed.
The sale is expected to be completed within 10 days. Moho stated that this decision aligned with its strategy to realise value from its existing portfolio while seeking new project opportunities.
The company cited the high exploration costs and administrative demands associated with Empress Springs as factors that made the project inconsistent with its financial strategy.