Total
0
Shares
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Rafaella Resources (RFR) has completed the sale of the Sandstone gold exploration project to Westar Resources
  • The company decided to sell Sandstone to focus on fast-tracking the development of its flagship Santa Comba tungsten project and to progress its McCleary polymetallic exploration project
  • Due to COVID-19, both companies have agreed to amend the terms of the sale
  • Rafaella has now received three million shares in Westar at the recent fundraising price of $0.05 per share, giving the company a five per cent stake
  • Rafaella remains steady on the market today, selling shares for 8.8 cents each

Rafaella Resources (RFR) has completed the sale of the Sandstone gold exploration project to Westar Resources.

The company decided to sell Sandstone to focus on fast-tracking the development of its flagship Santa Comba tungsten project and to progress its McCleary polymetallic exploration project.

Westar Resources is a private gold exploration company with projects in Western Australia.

The original terms of the buy involved a $50,000 cash deposit, followed by the issuance of $100,000 in Westar shares upon a successful public offering. However, due to COVID-19, those terms have changed.

Westar has elected to conduct a private fundraising to undertake the next steps of its strategy. Rafaella has agreed to amend the terms of the disposal whereby the full consideration has been met through the issue of Westar shares at the current private placement pricing.

As a result, Rafaella has now received three million shares in Westar at the recent fundraising price of $0.05 per share, giving the company a five per cent stake.

“The sale of the Sandstone Project further demonstrates management’s ability and determination to deliver its stated objectives. The company is focussed on the near-term release of an updated JORC Resource Report soon to be followed by the Santa Comba feasibility study,” Managing Director Steven Turner said.

“Rafaella Resources is pleased with the completion of the Sandstone sale and the amended terms that give the company increased exposure to an exciting junior gold exploration company that has achieved rapid progress in building a credible portfolio,” he added.

Rafaella Resources remains steady on the market today, selling shares for 8.8 cents each at 10:27 am AEST.

RFR by the numbers
More From The Market Herald

" Red River Resources (ASX:RVR) commences drilling program at Thalanga

Red River Resources (RVR) has commenced a drilling program targeting gold areas near its Thalanga Operations in northern Queensland.
Venus Metals (ASX:VMC) - Managing Director, Matthew Hogan

" Venus Metals (ASX:VMC) intersects encouraging mineralisation at Vidure

Venus Metals (VMC) has intersected encouraging copper-nickel-platinum group element (PGE) mineralisation at the Vidure Prospect.

" Whitehaven Coal (ASX:WHC) uses record prices to pay down debt

Whitehaven Coal (WHC) will use the uplift

" Alderan Resources (ASX:AL8) commences drilling at Detroit

Alderan Resources (AL8) has commenced drilling at its Detroit copper gold project, located in the US state of Utah.