Shareholders have approved Richland Resources' (LON:RLD) sale of its troubled tanzanite mining operation to Sky Associates at a special meeting on December 22.
Richland has been battling illegal miners on its blocks in Tanzania for months, which meant profitable mining has not been possible, it said.
This, allied to its need to raise funds for its new sapphire business in Queensland, prompted the decision.
Shareholder approval was one of the three conditions. It also requires Tanzanian government approval and a green light from the South Africa Reserve Bank.
If shareholders had not approved Richland could have been liable to repay the signing consideration and pay an additional US$510,000 to Sky Associates.
There is now no way it could be required to pay Sky Associates the additional US$510,000 but it could still be required to repay the signing consideration to Sky Associates if the remaining conditions are not satisfied.
Richland shares were unchanged at 1.75p each.