- Magnum Mining and Exploration (MGU) will sell its 74 per cent interest in the Gravelotte project in South Africa for up to $2 million
- The company will be paid $200,000 by URA Holdings for each 5 million carats of gemstones produced at the Gravelotte project
- It made the decision to sell as activities at the project remain limited due to reduced travel and restrictions from COVID-19
- The sale will allow the company to increase its focus on progressing its Buena Vista project in the US for green pig iron production
- Magnum shares were trading flat at 7.6 cents
Magnum Mining and Exploration (MGU) will sell its 74 per cent interest in the Gravelotte emerald project in South Africa for up to $2 million to focus on developing its pig iron project in the US.
The company entered into sale and purchase agreement to sell its subsidiary Gem Venus to London-listed URA Holdings.
This will see Magnum paid $200,000 for each 5 million carats of gemstones produced at the Gravelotte project, to a maximum of $2 million.
URA will also issue GBP100,000 (A$176,000) in shares and be responsible for all operations costs of the project until completion.
MGU made the decision to sell as activities at the project remain limited due to reduced travel and restrictions from COVID-19.
It will allow the company to focus on its strategy of crystallising value from its portfolio of non-core assets while giving more attention on progressing its Buena Vista project in the US state of Nevada for green pig production and a steelmaking facility.
Shares were trading unchanged at 7.6 cents at 9:20am AEDT.