Empire Metals Ltd (AIM:EEE, OTCQX:EPMLF) has moved a step closer to exiting a non-core gold asset after signing a definitive sale and purchase agreement for its 75% stake in the Eclipse Mining Lease near Kalgoorlie, Western Australia.
The AIM-quoted exploration and development company said total consideration for the stake is A$750,000, including a A$50,000 non-refundable deposit already received and A$700,000 payable in cash on completion.
Completion remains subject to customary conditions precedent, including Ministerial approval, with the company expecting the sale to complete in the near term.
Managing director Shaun Bunn said the transaction would allow Empire to direct capital and management focus toward the Pitfield Titanium Project, which the company describes as one of the largest titanium discoveries globally.
Empire said it continues to review options for other non-core assets as it accelerates development activities at Pitfield, where its mineral resource estimate totals 2.2 billion tonnes grading 5.1% TiO₂ for 113 million tonnes of contained TiO₂.
SP Angel, the company's broker, said the mine developer continues to streamline its portfolio as it focuses on developing Pitfield, its long-life, large-scale strategic titanium asset.
The broker noted the A$700,000 in proceeds from the Eclipse sale, alongside the recent $8 million raise, will support various workstreams as management continues to derisk the project.
Empire is advancing pilot-scale testing and marketing of the high-value titanium dioxide product as it works towards an upgraded mineral resource estimate and Pitfield scoping study.
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