Shree Minerals Limited (ASX:SHH) will divest its interest in the Arunta joint venture in the Northern Territory to MetalsGrove Mining Ltd (MGM).
The move frees up SHH to concentrate on its existing high priority exploration projects in NSW and Western Australia as well as the restart of production and shipping of iron ore from its wholly-owned Nelson Bay River Iron Ore Project in Tasmania.
SHH has executed a Sale and Purchase Agreement (SPA) with MGM for the divestment of its rights, title and interest in the farm-in and joint venture, along with shareholder agreement with Territory Lithium Pty Ltd.
The Arunta JV comprises the Box Hole, Edwards Creek and Bruce gold projects to the north and northeast of Alice Springs with the tenements being EL 31225, EL 32419 and EL 32420.
Regional location of the Arunta Joint Venture projects and major resource projects in the region.
MGM will pay SHH $50,000 and issue 4.75 million fully paid ordinary shares in the capital of MGM at a deemed issue price of $0.20 each.
The SPA is subject to satisfactory due diligence by MGM and on conditional approval being obtained from the Australian Securities Exchange (ASX) for MGM to list on the exchange.
SHH does not currently intend to conduct an in-specie distribution of the MGM shares but notes that SHH shareholders will retain exposure to MGM while SHH holds the MGM shares, which may be subject to ASX escrow when MGM lists.