Shares in Zenith Minerals Ltd (ASX:ZNC) have risen more than 13% as the company told investors it had sold its remaining 49% interest in the Develin Creek copper-zinc project in central Queensland to QMines Ltd (ASX:QML).
The sale means that Zenith now holds a fairly large stake in QMines – with the sale delivering $687,500 worth of shares in the latter company (or 10,261,194 shares), as well as $975,000 in cash (plus GST).
The two companies agreed to adjust the final consideration payable following a metallurgical test work program on the project, with the final payment forming the second part of a two-stage transaction reported earlier this month.
Zenith managing director Andrew Smith said he was pleased the transaction had been completed successfully.
“This transaction represents the culmination of a productive collaboration with QMines and underscores our ongoing commitment to delivering value to our shareholders,” he said.
“We are excited about the continued growth and development of the Develin Creek project under QMines’ stewardship.”
At 15:17 AEST, Zenith shares were trading at 4.9 cents – a rise of 13.95% since the market opened.
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