Strategic Minerals Plc (LON:SML) (USOTC:SMCDY) has signed an agreement in principle to sell a suite of gold tenements currently held by its subsidiary Central Australian Rare Earths.
The buyer is Great Southern Mining LTD (ASX:GSN).
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The total consideration is A$145,000 to be paid by way of A$1mln in cash and one million shares in GSN at an issue price of A$0.045.
The sale of these tenements will allow Central Australian Rare Earths to focus on its nickel, cobalt and rare earth exploration.
"As a result of the ongoing evaluation and rationalisation of the CARE tenements, the board has decided that the tenements identified as gold targets are not in line with the company's strategy of pursuing battery-related metals and the sale of these assets allows Strategic Minerals to focus future exploration on nickel sulphides, cobalt and rare earth elements,” said Strategic Minerals managing director John Peters.
"The company looks forward to updating the market shortly on its plans to undertake further drilling around Hanns Camp, notably at Hanns Camp South, which is showing good signs of nickel sulphide prospectivity."