Australian Vanadium (ASX:AVL) has completed the sale of its100% equity in the Peak Hill Project located in the Bryah Basin of Western Australia to aspiring ASX company, Bryah Resources Limited.
Bryah is presently an unlisted public company with a focus on gold and copper exploration.
It is now in the advanced stages of preparation to undertake an initial public offering (IPO) on the ASX in the coming months.
In addition to the sale of the Peak Hill Project, AVL has agreed to sell the precious and base metal rights in the Gabanintha Project to Bryah, subject to Bryah listing.
AVL will receive a 0.75% net smelter return and shares in Bryah, giving AVL a 7-9% stake upon listing.
The equity position allows AVL to benefit from any copper-gold exploration success at Gabanintha or on their Bryah Basin tenements which are in an area of significant mineral deposits.
All AVL shareholders at the time of the public offer will be given a priority opportunity to participate.
Drilling next week in South Africa
In other news, the drilling rig and crews are presently mobilising to the Blesberg Lithium Project located in South Africa to commence drilling next week.
The present plan is to drill circa 4,000 metres of reverse circulation and 500 metres of diamond drilling to test the depth and lateral extensions of the main Blesberg pegmatite.