Meteoric Resources (ASX: MEI) has resolved to transfer its 51% interest in the Tibooburra gold project in New South Wales to joint venture partner Awati Resources.
Meteoric will receive $150,000 from proceeds of any sale of the project; or from production, payable when sales revenue exceeds production Costs by least $150,000; or if Awati completes an initial public offering (IPO), successfully raises funds and is admitted to the ASX within 36 months of the agreement date.
In the event that Awati completes an IPO, in addition to $150,000 cash, Meteoric is to be issued Shares in Awati to the value of $150,000 at the IPO price.
Meteoric will also retain a 2% net sales royalty annually when revenue exceeds production costs, calculated as 2% of sales revenue remaining after subtraction of costs.
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