Talga Resources (ASX:TLG) has granted Novo Resources Corporation (TSX:NVO) an option to purchase three of its four Australian gold assets for up to $1 million in cash and a royalty on production.
This will allow the company to focus on its graphene and graphite opportunities in Sweden and Germany.
The Mosquito Creek, Talga Talga and Warrawoona Projects are located in the Pilbara region, Western Australia.
Novo recently acquired three mining leases at Beatons Creek from Millennium Minerals (ASX:MOY). These now form part of its Beatons Creek gold project near Nullagine in the East Pilbara.
The Option can be exercised within an initial four month period unless Novo pays a further non-refundable amount of $200,000 to extend the option period to two years.
This will allow Novo to purchase the projects separately at $250,000 each.
Talga retains 100% equity in the Projects until the purchase price is paid in full.
The company will be due a 2.25% gross royalty payable on the net smelter return of minerals extracted from any of the projects prior to exercise of the option, and 1.5% in perpetuity thereafter.
Talga had $5.67 million in cash and deposits with no debt as at 30th June 2015.
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