Andromeda Metals has announced it has completed the sale of its Drummond epithermal gold project in Queensland to Trigg Minerals subsidiary Rush Resources.
The company confirmed it received a total of 29,500,000 Trigg shares in exchange for reimbursement of expenses related to the sale of Drummond.
The shares will be issued in addition to a $27,000 cash advance and a $7,500 cash refund of the project’s environmental bonds.
“The sale of Drummond is consistent with our corporate strategy to divest non-core assets to support the commercialization and development of the Great White project,” said Bob Katsiouleris, CEO and Managing Director of Andromeda.
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The project’s sale to Rush Resources began in October 2022, when Andromeda entered into an agreement in exchange for $250,000 of fully paid-up ordinary shares in Rush, conditional on Rush’s listing on the ASX.
Instead of a direct listing, Rush became a subsidiary of Trigg Minerals, with Andromeda receiving a corresponding stake in Trigg.
Andromeda has now received an initial value of $250,000 in Trigg stock, as well as $45,000 as compensation for all expenses incurred by Andromeda on Drummond Properties from August 1, 2022, to June 30, 2023.
Andromeda also announced the sale of its remaining 25% interest in the Wudinna gold project on Australia’s Eyre Peninsula in southern Australia to Cobra Resources.
“In addition to the recent announcement regarding the sale of the Drummond epithermal gold project, this announcement demonstrates that our strategic focus remains on securing the necessary financing to make a final investment decision and commence construction on the Great White Project.” Tsiulleris.
In return for the project, the company will receive $500,000 in cash and $1 million worth of Cobra stock.