Impact to sell Nowthanna stake to Toro

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THE BOURSE WHISPERER: Diversified exploration play Impact Minerals told the Australian Securities Exchange it has signed a non‐binding Term Sheet to sell its entire 40% beneficial share of the Nowthanna uranium deposit in Western Australia.

The sale will be to fellow ASX-listed uranium explorer Toro Energy, which is the sole owner of the Wiluna uranium project, located 150 kilometres east of Nowthanna.

The sale comprises 100% of Impact’s tenement E51/1075, better known as the Quinns Lake project, as well as its 20% share of E51/1072, which is part of the Yarrabubba Joint Venture.

Toro has also agreed to purchase the remaining 80% of E51/1072 from the other parties in the Yarrabubba Joint Venture.

Subject to due diligence by Toro, Impact will receive a cash payment of $713,000 plus just on 5.49 million ordinary Toro shares as its share of the consideration payable.

Half of the shares will be escrowed for 6 months with the remaining half escrowed for 12 months.

The sale is also subject to the execution of a Sale and Purchase Agreement and statutory or third‐party consents and approvals.

“The sale of the Nowthanna uranium deposit has come at a good time for Impact and reflects the company’s continuing primary focus on its highly prospective exploration assets for uranium and nickel‐copper‐PGE’s in Botswana in Africa,” Impact Minerals managing director Dr Mike Jones said in the company’s ASX announcement.

“The consideration we will receive will be used to further accelerate our exploration programs on the Botswana uranium project where a major drill program is in progress and the Xade nickel‐copper‐ PGE project where a major airborne magnetic survey has commenced.”

Through the direct shareholding in Toro, Impact will also retain significant upside to the targeted first production from late in 2013 from Toro’s Wiluna uranium project in Western Australia.

It will also benefit from Toro’s extensive portfolio of uranium prospective exploration assets elsewhere in Western Australia as well as South Australia, the Northern Territory and Namibia.