Gold Mountain has entered into a binding agreement with Golden Crane Mining to sell its exploration licences in Papua New Guinea for A$2 million.
Golden Crane will pay a $300,000 deposit, of which $100,000 is only refundable in the event of breach of certain information warranties given prior to the agreement being signed. It will pay a further $1,100,000 following due diligence, with the balance of the purchase price to be paid at completion.
Gold Mountain officials said proceeds from the sale will advance exploration on the company’s Brazilian exploration projects and for working capital.
Completion of the transaction is subject to certain customary conditions.
Source: Gold Mountain