Talga Resources (ASX:TLG) has moved closer to realising the full value of a recent strategic gold tenements sale by receiving an option payment that sets the company up for potential new cash receipts and royalties.
In August last year, Talga moved to sell three of its four Australian gold assets to Novo Resources (TSX:NVO) subsidiary Beatons Creek Gold for a cash consideration of up to A$1 million plus a royalty on production.
Talga has received $250,000 in the transaction to date.
With Talga taking a $200,000 option payment today under the terms of the deal, Beatons is now in position purchase of all the gold projects in question for another $750,000.
This would allow Talga to receive a 2.25% gross royalty payable on the net smelter return of minerals extracted from any of the projects prior to the exercise of the Option, and 1.5% in perpetuity thereafter.
The projects involved in the transaction include Mosquito Creek, Talga Talga and Warrawoona, all located in the Pilbara region of Western Australia.
Talga’s remaining Australian gold asset, Bullfinch, is located in the Yilgarn region of WA and is the subject of non-formal and ongoing discussions with multiple parties regarding its divestment.
The gold divestment was planned to allow Talga to focus on its graphene and graphite opportunities, with proceeds from the sale and any royalty payments to be applied directly to Talga’s developments in Sweden and Germany.
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