- Meteoric Resources (MEI) agrees to sell the Juruena gold project in Brazil to Keystone Resources for up to US$22 million (A$30.2 million)
- The purchase will be made in cash in three stages and includes a two per cent gross royalty that is capped at US$2 million
- The sale allows Meteoric to speed up the development of the Palm Springs gold project and undertake acquisitions and investments
- Furthermore, Andrew Tunks has stepped down as Managing Director — a position he has held since 2018 — to assume a Non-Executive Director role
- Meteoric is up 28.6 per cent on the market with shares trading at 1.8 cents at 10:28 am AEST
Meteoric Resources (MEI) has agreed to sell the Juruena gold project in Brazil to Keystone Resources for up to US$22 million (A$30.2 million).
Keystone is a wholly-owned subsidiary of investment holding company Alchemist Investments that has experience in developing mines.
The purchase will be made in stages with the first consisting of a cash payment of US$2.5 million upon completion, US$7.5 million in cash six months after completion, and US$10 million in cash 12 months after completion.
The purchase also includes a two per cent gross royalty, capped at US$2 million in cash.
The sale will allow Meteoric to speed up the development of the Palm Springs gold project and undertake new acquisitions and investments.
“I am very proud of the work we have completed in firstly identifying then securing Juruena followed by our successful exploration of the project over the past three years,” Managing Director Andrew Tunks said.
“We consider this the ideal moment at which the pass Juruena to a group far better placed than ourselves to now develop the project, allowing Meteoric to focus on what it
does best, which is the identification, acquisition and advancement of projects through high-quality exploration focusing on results generated at the drill bit.”
In addition to the sale, Mr Tunks has stepped down as Managing Director — a position he has held since 2018 — to assume a Non-Executive Director role.
According to Chairman Pat Burke, a search is underway for a successor.
“On behalf of the Board and our shareholders, I would like to thank Andrew for his excellent leadership over the past four years. Andrew is equally at home in the field and the boardroom, and is always available to shareholders and investors, a great retail MD,” Mr Burke commented.
“We will miss his leadership, but are very happy he is remaining in a non-Executive role. The Board has commenced a search for his successor to lead Meteoric’s next chapter on the back of this excellent result with the sale of Juruena.”
Meteoric was up 28.6 per cent on the market with shares trading at 1.8 cents at 10:28 am AEST.