Infinity sells Leonora copper asset to focus on core projects
Infinity Mining has executed a binding share sale agreement to transfer its interest in the Leonora Goldfields copper project in Western Australia as part of a tenement merger.
The tenements will be transferred to ASX-listed WA and Northern Territory-based explorer Evergreen Lithium via private company U Resource. Under the deal, Infinity will become a substantial shareholder in Evergreen (EG1) and retain exposure to any upside from the Leonora Goldfields project.
Management says the arrangement supports Infinity's longer-term strategy to liberate value from the company's non-core assets and sharpen its focus on advancing its core assets.
Infinity owns a diverse portfolio of gold and copper projects in New South Wales, Victoria, WA's East Pilbara and the Central Goldfields. The company's immediate priority will be further exploration and development of its flagship Cangai copper project, about 50 kilometres northwest of Grafton in northeastern NSW.
Infinity acquired Cangai, with its three exploration licences, last October. The project has a JORC (2012) compliant mineral resource estimate of 4.4 million tonnes inferred in-situ mineralisation at a grade of 2.5 per cent copper.
The estimate includes an additional indicated resource of 0.2Mt at 1.35 per cent copper in historic stockpiles for about 114,000t of contained copper metal, with additional credits for zinc, gold and silver.
Under the sale agreement, Evergreen will pay Infinity a $35,714 cash deposit within five days of execution.
In turn, Infinity will be issued an upfront consideration of 8,928,571 Evergreen shares valued at $446,439 at a deemed price of $0.05 per share on completion of the transaction.
Infinity will also be issued deferred Evergreen shares valued at $267,857, subject to shareholder approval, based on a 14-day volume-weighted average price (VWAP) measured between April 11 and April 30, with a floor of $0.035 and a cap of $0.065 per share.
Additionally, Infinity will receive a milestone consideration of $89,286 in Evergreen shares, based on a 14-day VWAP, which will be issued if Evergreen announces a JORC-compliant inferred resource greater than 100,000 ounces of gold within three years.
The upfront and deferred considerations will be escrowed for 12 months from the date of issue of the upfront consideration.
Infinity says the deal provides the additional funding it requires to advance its core projects. The deal opens the door for immediate value realisation and potentially to long-term growth, as the Leonora project is advanced by Evergreen's strong leadership team.
Evergreen is chaired by Simon Lill, who played a key role in Northern Star's $5 billion acquisition of De Grey Mining. He is accompanied at Evergreen by newly-appointed non-executive director Steven Morris, who brings extensive gold mining expertise that includes previous roles at De Grey Mining and Auric Mining.
Is your ASX-listed company doing something interesting? Contact:
matt.birney@wanews.com.au
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