- Sheffield Resources (SFX) is selling its Eneabba project to ASX-listed Image Resources (IMA) for $24 million
- The divestment of the Eneabba project is subject to customary conditions with the transaction expected to close in early 2022
- Cash proceeds will be applied toward Sheffield’s $10 million obligation to Kimberly Mineral Sands
- Sheffield says the sale aligns with its strategy of focusing on its core Thunderbird mineral sands project in WA
- Sheffield Resources’ shares are 7.25 per cent in the green at 37 cents and Image Resources is down 2.33 per cent to trade at 21 cents
Sheffield Resources (SFX) has entered into a binding agreement with ASX-listed Image Resources (IMA) to sell its Eneabba project for a total of $24 million.
The Western Australian tenement package comprises eight exploration licences, three mining leases and one retention licence covering eight project areas.
Excluding the mining leases, the sale of the Eneabba tenements is conditional upon obtaining regulatory approval to transfer the retention licence, as well as obtaining third party approval. These conditions are expected to be satisfied in early 2022.
The acquisition of the three mining leases is subject to receiving approval from the Foreign Investment Review Board (FIRB) which may take up to several months.
Due to the lengthy process, the parties agreed to proceed to completing the sale $23 million. Once the sale of the three mining leases is completed at a later date, Image will pay a further $1 million in cash.
Cash proceeds will be applied toward Sheffield’s $10 million obligation to Kimberly Mineral Sands payable within 60 days.
This will follow a final investment decision for the Thunderbird mineral sands project in WA.
Sheffield Resources executive chairman Bruce Griffin said the company was satisfied with the outcome.
“Sheffield is very pleased to have realised meaningful value for our non-core Eneabba project, consistent with Sheffield’s strategy of focusing on our core Thunderbird asset. It is particularly pleasing to be able to divest Eneabba to Image given the strong alignment of these assets to their growth strategy.”
Sheffield Resources’ shares were 7.25 per cent in the green at 37 cents at 1:22 pm AEDT. Meanwhile, Image Resources’ shares were down 2.33 per cent to trade at 21 cents.