Maximus Resources (ASX: MXR) is set to boost its cash balance following the company entering into a binging sales agreement with Terramin Australia (ASX: TZN) for five of its Adelaide Hills tenements, which are located in South Australia.
The sale includes the Bird in Hand gold project near Woodside, with Maximus still leveraged to success of the project as the consideration for the deal includes 25 million shares in Terramin (worth around $450,000) plus a 0.5% royalty on future gold production.
On top of the scrip component, Maximus will received $3.5 million in staged cash payments (this includes a $1.5 million up front payment), with Maximus to now focus on its existing base metal and gold exploration programs.
The cash increase also positions Maximus to potentially review other asset purchases, or to ramp-up exploration.
Exposure in Adelaide Hills
Maximus will maintain exposure to the Adelaide Hills area as it will retain three tenements prospective for gold.
The company is also pursuing joint ventures to recommence exploration on the Billa Kalina tenements, which are located in the central region of South Australia within the Gawler Craton.
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