THE BOURSE WHISPERER: Rox Resources (ASX: RXL) has received an up-front payment of $15.8 million having completed the sale of the company’s interest in the Reward zinc-lead project to Teck Australia Pty Ltd.
Rox Resources explained the up-front purchase price to be comprised of:
$7,850,000 in cash, being $8 million less the $150,000 deposit already paid;
$2,727,273 in cash, which Teck elected to pay in lieu of the share component as provided for in the agreement; and
$5,250,000 in cash, being the value of a Promissory Note that Teck elected to pay up front.
In addition, there remains a deferred payment of $3,750,000 on completion of a Bankable Feasibility Study on the project, or the passing of six years – whichever comes first.
“Rox has clearly demonstrated to the market that we can acquire, explore, develop and monetise projects for the benefit of our shareholders,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.
“The sale of our interest in the Reward project has been our biggest transaction yet, and means that we are now well-funded to continue exploration on our exciting Western Australian nickel sulphide projects.
“It also means that we can make the most of any other opportunities that we identify.”