Boadicea Resources Ltd (ASX:BOA) has received an upfront consideration of $5.5 million for the sale of Fraser Range tenements to IGO Ltd (ASX:IGO) along with a $1.5 million subscription from IGO for 6.25 million shares at 24 cents per share.
This follows the approval of the asset sale of nine tenements to IGO at the company’s recent general meeting.
The asset sale agreement will see IGO Newsearch explore nine of the company’s tenements on the range at no cost to Boadicea for up to five years.
IGO's cash injection will be used to accelerate exploration activities at Boadicea’s Paterson Province (Koongulla) project and other tenements.
Key activities underway
The receipt of the upfront consideration and subscription price constitutes the commencement date in accordance with the asset sale agreement (ASA) with the following key terms having subsequently been actioned:
- Repayment of the $250,000 IGO Loan;
- Allotment of 6.25 million ordinary shares in the company to IGO Limited;
- The company has granted exclusive exploration rights to IGO Newsearch Pty Ltd for the nine defined tenements in the Fraser Range; and
- IGO Limited now has the right to nominate a non-executive director for appointment to the board.
At present, a non-executive director nomination from IGO Ltd has not been received.