- Impact Minerals (IPT) agrees to sell a 75 per cent interest in its Commonwealth project in New South Wales to Burrendong Minerals for a potential $550,000
- The deal is contingent on Burrnedong listing on the ASX within nine months of signing a share purchase agreement with Impact
- As part of the deal, Impact will hold a 19.9 per cent interest in Burrendong once it lists on the ASX, and the two companies will then own the Commonwealth project in a joint venture
- Burrendong will sole fund exploration at the project until it spends $5 million on exploring the area or the JV makes a formal decision to mine — whichever comes first
- Shares in Impact Minerals are trading grey at 0.8 cents per share at 12:39 pm AEST
Impact Minerals (IPT) has agreed to sell a 75 per cent interest in its Commonwealth project in New South Wales to Burrendong Minerals for a potential $550,000.
On top of the cash payment, today’s deal would also see Impact become a major shareholder in Burrendong and the two companies form a joint venture (JV) over the Commonwealth project.
Today’s deal is contingent on Burrendong listing on the ASX within nine months of signing a share purchase agreement (SPA) with Impact.
Impact Managing Director Mike Jones said the sale was a “very good” outcome for the company and its shareholders.
“It allows us to continue our strategic change in focus to the large and prospective portfolio of battery and strategic metals projects in Western Australia which we have put together over the past 18 months and, in addition, also gives Impact considerable exposure to the upside potential of the Commonwealth project into which we have invested financial and considerable intellectual capital,” Dr Jones said.
“We continue to believe that the project has a great future and we look forward to working with Burrendong to move the project forward upon listing.”
Under today’s agreement, Burrendong will pay $25,000 for an eight-week exclusivity period to complete a SPA and a joint venture agreement with Impact. Burrendong has the option to extend this exclusivity period by a further eight weeks for another $25,000.
Once the SPA has been executed, Impact will receive $250,000 cash, and Burrendong will have nine months to list on the ASX.
Upon listing, Impact will receive a further $250,000 cash and a 19.9 per cent interest on the newly-listed company, and it will keep its 25 per cent interest in the Commonwealth project.
The project will then be held under a JV between the companies, with Burrendong to sole fund exploration until either $5 million is spent on exploring the area or the JV makes a formal decision to mine — whichever comes first.
Additionally, Impact shareholders will be given a priority right to subscribe for up to $3 million worth of Burrendong shares when the new company goes to list on the ASX.
The Commonwealth project comprises over 500 square kilometres of land in the Lachlan Ford Belt, about 100 kilometres from Orange.
Shares in Impact Minerals were trading grey at 0.8 cents per share at 12:39 pm AEST.