Element 25 Ltd (ASX:E25) has banked $1 million from the sale of its Holleton Gold Project to Ramelius Resources Limited’s (ASX:RMS) wholly-owned RMS subsidiary Edna May Operations Pty Ltd (EMO).
Asset seller Element viewed the gold project as non-core and said today the sale funds would provide working capital to the business as it focused on manganese.
READ: Element 25 selling non-core Holleton Gold Project to focus on manganese
Element executive director Justin Brown said: “This transaction represents an important incremental step in the company’s stated strategy to rationalise its project portfolio to allow the technical team to focus on the high-purity manganese business at Butcherbird.”
Butcherbird is in the southern Pilbara subregion of Western Australia.
READ: Element 25 advancing high-purity manganese pre-feasibility study
Element, which traded as Montezuma Mining when it was focused on multi-metals, may enjoy returns from a trailing 1% net smelter royalty on all future production from Holleton project
Brown said: “The cash will provide important working capital whilst the royalty ensures that shareholders will benefit from future exploration success as EMO and RMS roll out their exploration programs.”
Holleton exploration licence application covers around 115 square kilometres of the Holleton Greenstone Belt, about 400 kilometres from Perth.