- Stavely Minerals (SVY) has signed a letter of intent to sell its gold projects in Tasmania and Victoria to Nubian Resources for $2.5 million
- Under the agreement, Nubian will acquire the Mathinna and Lefroy tenements in Tasmania and the Fosterville East tenement in Victoria
- Nubian will pay a non-refundable $100,000 cash deposit and issue $2.4 million in shares to Stavely upon signing a definitive agreement
- The sale will allow Stavely to focus on continued resource drill-out at its Cayley Lode discovery, as well as broader exploration work at its Stavely copper-gold project
- Today, Stavely Minerals shares are steady, trading for 68 cents each
Stavely Minerals (SVY) has signed a letter of intent to sell its gold projects in Tasmania and Victoria to Nubian Resources for $2.5 million.
The deal relates to Stavely’s Mathinna and Lefroy tenements in Tasmania and the Fosterville East tenement in Victoria.
Under the agreement, Nubian will issue a non-refundable deposit to Stavely, worth $100,000 in cash. There will then be a 60-day exclusivity period for the completion of due diligence and the formation of a definitive agreement.
Upon signing the definitive agreement, Nubian will issue a number of share to Stavely, equal to $2.4 million, based on the volume-weighted average price five trading days prior.
Stavely’s divestment of the projects will allow for a greater focus on the continued resource drill-out at its Cayley Lode discovery, as well as a broader exploration program at its wholly-owned Stavely copper-gold project in western Victoria.
Chris Cairns, Executive Chairman and Managing Director of Stavely Minerals, said the package of tenements will afford Nubian the opportunity to explore for orogenic gold similar to Kirkland Lake Gold’s Fosterville Gold Mine.
“We are fully focused on defining the extents of the exciting Cayley Lode high-grade copper-gold-silver discovery at the Stavely Project, while also unlocking the full potential of this highly prospective, multi-layered exploration opportunity for our shareholder,” Chris commented.
“Rather than diluting Stavely’s technical focus at the Stavely Project, this transaction will allow the technically experienced team at Nubian Resources to progress a focused exploration campaign at these high-potential orogenic gold assets,” he added.
Chris further noted that Stavely will retain substantial exposure to any future success at the projects via a significant shareholding in Nubian.
Today, Stavely Minerals shares are steady, trading for 68 cents each at 10:30 am AEST.