African Chrome Fields (ASX:ACJ) has entered into a conditional agreement to sell its interest in African Chrome Fields Pte Limited for US$4 million.
The company has also agreed to grant an extension to the due diligence period until close of business on 12 June 2014.
In consideration for granting this extension, the parties have agreed that US$150,000 of the US$300,000 deposit is now nonrefundable and will be transferred to ACJ's account.
The project consists of 150 chrome mining concessions that cover both eluvial and lumpy chrome deposits.
Existing plant and equipment is capable of processing 30,000 tonnes per month of feedstock to generate 3,000 tonnes of chrome concentrate per month.
This is a significant sale price given ACJ's market cap of under $3 million.
ACJ also holds 800 square kilometres of acreage in Western Australia's Canning Basin, where Buru Energy (ASX:BRU) and Mitsubishi Corp (TYO:8058) have had recent oil exploration success.
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