RareX Limited (ASX: REE) has agreed to sell its 35% asset level interests in the Trundle, Fairholme, Jemalong, Cundumbul, and Condobolin exploration licences, NSW, to its joint venture partner Kincora Copper Limited, for consideration comprising 40M Kincora chess depositary interests (CDIs), and a 1% net smelter return royalty (NSR).
RareX chairman, Jeremy Robinson, said, “The time has come to vend our NSW exploration interests to Kincora, clearing the path for a major to take over the funding and add to the exploration of these world-class projects. I look forward to assisting growing Kincora’s portfolio.”
Concurrent with the transaction, the company has undertaken an oversubscribed A$2m placement with RareX becoming Kincora’s largest shareholder post the placement and transaction with a holding of approximately 45M shares (18%) in Kincora, comprising 40M shares issued under this transaction and 5M already owned by RareX.
Additionally, as part of the transaction, RareX chairman Jeremy Robinson will join the board of Kincora.
The company has stated that consolidating project ownership and removing the existing carried interests increases the strategic value of the NSW project portfolio for all Kincora shareholders.
The portfolio already has interest from mid-tier and industry majors.
The transaction is subject to:
•Kincora obtaining shareholder approval proposed to be obtained at an annual general and special meeting to be convened in September 2023
•Kincora completing a placement for an aggregate subscription amount of not less than 30M CDIs
•The parties obtaining approvals required under the Mining Act 1992 (NSW)
To find out more, please visit www.rarex.com.au
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