GTI Resources Ltd (ASX:GTR) has entered into a binding agreement with Regener8 Resources NL for the sale of certain Western Australian tenements, comprising GTR’s Niagara Gold Project near Kookynie.
GTR has conditionally agreed to sell its 100% interest in the project to Regener8 subject to conditions including shareholder and regulatory approvals.
The divestment of GTR’s gold assets, will enable the company to focus on its highly prospective US uranium assets.
Regener8 intends to undertake an IPO to raise a minimum of $4.5 million and a maximum of $5.5 million (before costs) at a price of 20 cents per share to facilitate admission to ASX and for operational costs at Niagara.
GTI will receive 5 million ordinary R8R shares, 1.5 million performance rights and $150,000 cash when R8R lists for a potential total value of $1.45 million at IPO.
Eligible GTI shareholders will also have the opportunity to participate in a priority offer under Regener8’s IPO.
Uranium focus to drive GTR forward
“Divestment of GTI’s non‐core gold assets is a crucial step forward as we execute our strategy to focus the company’s financial and management resources on key uranium assets in the USA,” GTI chairman Nathan Lude said.
“By divesting these gold assets into Regener8, GTI will be able to focus on our key USA uranium assets while retaining exposure to a company that will be focused on the development of an exciting suite of gold exploration properties in the currently very active Kookynie belt of WA’s eastern Goldfields.
“GTI will retain a material shareholding and board representation in a well‐funded entity focused on gold exploration in WA. We believe this is a great opportunity to maximise shareholder value in these highly prospective gold assets.”
Should all go to plan, the newly listed company, would be assisted by a dedicated board and management team, focused on exploration and development of the Niagara Gold Project.
Meanwhile, GTR can concentrate all its efforts on exploration drilling for ISR amenable uranium, which is underway at the Thor project in Wyoming’s Great Divide Basin.
Just last week, GTR announced it was preparing to complete the remaining 60 holes of a planned 100-hole maiden drill program at Thor.