Beacon Minerals (ASX:BCN) completed the sale of its 100% shareholding in MacPhersons Reward to Forrestania Resources (ASX:FRS).
The finalisation of the deal follows the satisfaction of all conditions precedent, concluding a binding agreement originally entered into by Beacon’s subsidiary, Beacon Mining, on Feb. 16.
The strategic divestment allows the Western Australian gold miner to streamline its operations and sharpen its focus on core production assets, most notably the Lady Ida Project.
The transaction provides Beacon with a significant capital injection and continued upside potential through a strategic stake in the purchaser.
Under the key transaction terms, Beacon has received a total of $5 million in cash consideration.
The comprised a non-refundable deposit of $500,000 paid upon the execution of the initial agreement, with the remaining $4.5 million settled at the recent completion.
In addition to the liquidity boost, Beacon was issued 36 million fully paid ordinary shares in Forrestania at a deemed issue price of $0.38 per share.
Managing Director Graham McGarry noted that the completion marks a pivotal step in delivering value to the company’s shareholders.
By offloading the MacPhersons Reward Project, Beacon secures immediate cash proceeds while maintaining exposure to the project's future success through its new equity position in Forrestania.
At the time of reporting, the share prices of Beacon Minerals and Forrestania Resources were $3.10 and $0.48, respectively.