Ardea Resources Ltd (ASX:ARL) (OTCMKTS:ARRRF) (FRA:A91) has executed a tenement sale and purchase agreement (SPA) with Moneghetti Minerals Limited for the divestment of its non-core Bedonia East project.
The company plans to divest non-core assets as a part of its strategy to prioritise exploration and development work on its Kalgoorlie Nickel Project (KNP) tenure, within 150 kilometres of the city of Kalgoorlie-Boulder.
Following the conditions of SPA, Moneghetti will issue $300,000 worth of ordinary shares to Ardea during the upcoming the initial public offer (IPO), and Moneghetti will also grant Ardea a 1.5% net smelter royalty (NSR) with an option to extinguish the NSR for $2,000,000 for acquiring Bedonia East Project.
Moneghetti aims to list its shares on the ASX and will issue shares in the initial public offer (IPO) to fund the acquisition.
Proposed Moneghetti IPO
The divestment is subject to conditions precedent, including Moneghetti being satisfied with its due diligence investigations, and Moneghetti completing a minimum $4,000,000 IPO and successfully seeking admission to the ASX official list.
At present, Ardea does not intend to conduct an in-specie distribution of the Moneghetti shares but notes that the company’s shareholders will retain exposure to Moneghetti while Ardea holds the Moneghetti Shares, which may be subject to ASX escrow upon the listing.
Ardea does not intend to seek shareholder approval for the divestment.
The company will continue to consolidate its large West Australian project portfolio and will focus on the development of the Goongarrie Nickel Cobalt Project and exploration of compelling nickel sulphide and gold targets within the KNP.Ltd