- Australian Vanadium (AVL) signs an option agreement with Mining Green Metals (MGM) to sell its Coates Project and Nowthanna Hill Project tenements in WA
- Under the deal, AVL will receive 6.5 million shares in MGM, who plan to list on the ASX this year, a 0.75 per cent net smelter royalty and a cash payment of $190,000
- The sale will allow AVL to focus on its namesake project at Gabanintha
- MGM has one year to decide if it wants to go through with the deal
- AVL are up 5.26 per cent and trading at six cents per share
Australian Vanadium (AVL) has signed an option agreement with Mining Green Metals (MGM) to sell its Coates Project and Nowthanna Hill Project tenements in WA.
Under the deal, AVL will receive 6.5 million shares in MGM, who plan to list on the ASX this year, a 0.75 per cent net smelter royalty and a cash payment of $190,000.
The sale will allow AVL to focus on its namesake project at Gabanintha.
Coates holds exploration potential for nickel, base metals, gold and platinum group elements (PGE) and covers similar rock sequences to the nearby Chalice Gold Mines (CHN) Julimar project.
Nowthanna is a uranium project and is near the company’s Australian Vanadium Project.
“The option agreement offers AVL shareholders continued exposure to exploration success at the Coates and Nowthanna Hill projects in a focused exploration company,” Managing Director Vincent Algar said.
“AVL will retain an interest in the projects and be able to benefit from the suite of potential minerals at Coates which are currently in high and growing demand and the future
potential from the Nowthanna Hill Project.”
MGM has one year to decide if it wants to go through with the deal.
On the market, AVL was up 5.26 per cent and trading at six cents per share at 12:42 pm AEST.