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LCL Resources (ASX:LCL) has outlined its approach to selling off its Colombian gold projects to an entity called Tiger Gold Corporation (TGC).
Under an executed deal between the two companies, TGC has a right to acquire LCL’s Colombian assets; the Andes Gold Project and the Quinchia gold project respectively.
Obliged to pay LCL A$1 million, Tiger Gold’s part of the deal is wrapped in a requirement to list publicly on “a recognised Canadian stock exchange” by December 31 next year.
This, LCL described as the ‘going public transaction’ on Friday.
“The company is to receive an additional $0.5 million in cash and a percentage of the share capital in the vehicle that completes the Going Public Transaction equivalent to $8.5 million in consideration shares upon the Going Public Transaction,” the company wrote.
To pick up the projects in full, once a listed company, TGC is required to pay LCL a further $9 milliojj. The contract may be extended into 2026 depending on the flow of TGC’s deliverables under the acquisition option structure.
“We are delighted to have concluded a deal with a credible and high-calibre team such as Tiger Gold,” LCL EC Chris van Wijk said.
“We look forward to working with the Tiger Gold team to advance the projects and to grow our investment for the future benefit of LCL’s shareholders.
“This deal is a positive first step in rationalising the company portfolio of assets, bringing a material amount of cash into LCL which will see us well funded to continue low-cost exploration on our PNG assets and further business development activities aimed at generating returns for our shareholders.”
LCL last traded at 1cps.
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