Tasman enters tenement sell-up to BHP

THE BOURSE WHISPERER: Tasman Resources has agreed to sell five Exploration Licences (ELs) and one Exploration Licence Application (ELA) to global powerhouse BHP Billiton.

All six tenements are located on the Stuart Shelf in South Australia.

 

Location Plan showing Tasman’s ELs and ELA to be transferred to BHP Billiton. Source: Company announcement

Total consideration for the sale is $3 million, which will be split up as $2.925million being payable upon transfer of the ELs with the remaining $75,000 due upon transfer of the ELA to BHP.

The sales are each subject to several conditions precedent, including satisfactory completion of due diligence by BHP Billiton, Ministerial Consent and completion of EL and ELA transfers within six and nine months, respectively,” Tasman Resources said in its ASX announcement.

“Following satisfaction of these conditions precedent, BHP Billiton will acquire from Tasman ELs 4206, 4300, 4405, 4770 and 4857, and ELA 2011/299.”

The ELs and ELA cover a total area of 1,176 square kilometres and are located West, North and North East of Olympic Dam, and South East of Woomera.

The Agreements do not include Tasman’s EL 4322, which relates to the Vulcan iron-oxide copper gold uranium discovery located approximately 30km north of Olympic Dam, which is the subject of a Farm-in/Joint Venture Agreement with Rio Tinto Exploration.

Tasman said the sale would enable it to focus on Vulcan joint venture project, which it considers to be a priority at this stage.