Orion Minerals has entered a binding sale agreement with Evolution Mining, for Evolution to acquire 100% of Orion’s Connors Arc project in Queensland.
The sale of the non-core Tenements is consistent with Orion Minerals’ decision to place greater focus on its flagship project, the Prieska zinc-copper project in the Areachap Terrain, Northern Cape, South Africa and its highly prospective regional exploration projects within the Areachap Belt, including the advanced Jacomynspan nickel-copper-cobalt project.
Consideration for the sale of the Tenements consists of $2,500,000 cash and a 2% royalty on net smelter returns (NSR) from the sale of gold recovered and sold by Evolution from the Tenements to a value of $5,000,000.
If the acquisition of the Tenements has not been completed prior to 31 October 2018, either party may terminate the Agreement.
Terms of the Agreement
- An initial $1,500,000 cash payment, payable upon conditions typical for agreements of this nature being:
o Orion obtaining indicative approval from the Queensland Government Department of Natural Resources, Mines and Energy (Department), for the transfer of the Tenements to Evolution Mining; and
o The assignment to Evolution of the Tenements’ native title agreements
- A further $500,000 cash payment, payable to Orion Minerals upon approval by the Department for retention of the total area of three of the Tenements included in the Agreement until the renewal of the existing term of those Tenements;
- A further $500,000 cash payment, payable to Orion upon approval by the Department for renewal of two Tenements included in the Agreement and for retention of the total area of those Tenements for a period 12 months from the date of such renewal; and
- A 2% royalty on NSR from the sale of gold recovered and sold by Evolution from the Tenements to a value of $5,000,000