Chase Mining Corporation Ltd (ASX:CML) has sold its Alotta and Lorraine mineral claims in Quebec, Canada, to fellow ASX-lister Rafaella Resources Ltd (ASX:RFR).
In recent years, COVID-related travel restrictions meant that no company personnel could oversee Chase’s exploration on the ground, which led the company to look at how best to extract value from the Quebec project areas.
In exchange for the projects, Rafaella will hand over 8.33 million new, fully paid ordinary shares — subject to a six-month escrow — and $100,000 in cash.
Moving ahead, Chase will consider other complementary projects it can bring into the fold to advance its exploration portfolio.
Exploration incentives
Recently, Chase was awarded a C$276,102 (equivalent to A$305,628) refundable tax credit from the Quebec Government as an exploration incentive for work it completed in 2019.
In a similar fashion, Chase has lodged a claim for the 2020 exploration incentive with the government.
While the above Quebec activities were negotiated and progressed, Chase has also entered exploration joint ventures in Queensland.
More recently, it lodged applications for tenements in Queensland and Northern Territory in its own right, as it’s already announced to the market.
What’s next for Chase?
CML said in a market announcement today that it’s reviewing a number of complementary projects that would be a strategic fit for the company and would add substantial value for shareholders.
Already, the explorer has flagged it’s at “a very advanced stage of negotiations” in respect to one such project.
Moving ahead, Chase’s board will update the market on the project if it reaches the binding agreement stage.