Diatreme Resources finalises Cape Flattery Silica Project sale
Diatreme Resources (ASX:DRX) has finalised the sale of the Cape Flattery Silica Project, executing the share sale agreement originally dated April 13.
Under the completed terms, Metallica Minerals sold 100% of the issued share capital in Cape Flattery Silica to Cape Silica, a joint venture vehicle.
In exchange for the divestment, Diatreme was issued 2,220 ordinary shares in CSH and received an agreed reimbursement payment of approximately $2.1 million, boosting its working capital.
Joint venture partner Sibelco Silica has subscribed for 435 ordinary shares in CSH for a total of $5.1 million. The initial transaction immediately injects roughly $3 million in additional funding into the joint venture.
Financial flexibility could expand further if Sibelco exercises an available call option before July 7.
If executed, Sibelco will subscribe for an extra 376 ordinary shares for $4.4 million, pushing total joint venture funding to approximately $7.4 million before costs and stamp duty.
The divestment allows Diatreme to streamline its asset ownership across Far North Queensland.
By consolidating project costs, the transaction provides a focused development pathway for its flagship Northern Silica Project while facilitating enhanced community engagement.
