- Pursuit Minerals (PUR) completes the sale of its Scandinavian nickel and vanadium projects to Kendrick Resources for $3.1 million
- The sale comprised the issue of around $2.35 million worth of Kendrick shares, equivalent to 37.9 million shares
- A further $750,000 cash payment will be made upon the completion of a bankable feasibility study and a decision to mine
- Pursuit says the sale will allow it to fully focus on its Western Australian projects
- Shares in Pursuit have ended the day down five per cent at 1.9 cents
Pursuit Minerals (PUR) has settled the sale of its nickel and vanadium projects in Norway, Sweden and Finland to Kendrick Resources for $3.1 million.
The sale consisted of around $2.35 million worth of Kendrick shares, equivalent to 37.9 million shares, with 36 per cent free trading with the securities, equating to eight million shares every three months.
A further $250,000 cash payment will be made upon the completion of a bankable feasibility study that demonstrates an internal rate of return of no less than 25 per cent.
A final $500,000 cash payment will be made upon a decision to mine on any of the projects.
Kingston successfully raised £3.25 million (A$5.73 million) to fund project development.
“Pursuit is very pleased to confirm that Kendrick has settled on the purchase of our Scandinavian projects,” Managing Director Bob Affleck said.
“The company and its shareholders have the opportunity to participate in the growth of the Scandinavian projects through Kendrick. Pursuit is now fully focused on its Warrior and Commando projects.”
Pursuit first announced its intention to sell its Scandinavian projects in January 2021 to fully focus on its Western Australian projects.
Notably, Pursuit and its shareholders will retain the opportunity to be involved in the growth of the Scandinavian projects.
Shares in Pursuit were down five per cent and were trading at 1.9 cents at market close.