Iondrive (ASX:ION) announced the divestment of its South Korean mineral exploration business.
In a binding share purchase and assignment agreement, the company will sell its 100% interest in Korea Metal Resources through its Singaporean holding company, International Gold Private.
The transaction is set to yield an upfront cash consideration of $332,903, with completion expected no later than April 30.
Beyond the immediate cash injection, the sale provides substantial long-term fiscal benefits by stripping away the heavy operational overheads associated with KMR.
Iondrive anticipates a cost base reduction of approximately $600,000 per annum, as it will no longer be responsible for funding exploration activities in the region.
The streamlined financial structure is designed to accelerate the commercialisation of Iondrive’s flagship IONSolv metal extraction platform.
By offloading its traditional exploration assets, the company is doubling down on "urban mining" and the sustainable, low-emission recovery of critical minerals from end-of-life technologies, including batteries, solar panels, and e-waste.
Under the terms of the agreement, all existing intercompany loans will be assigned to the counterparty.
The transfer of ownership will become effective five business days following the fulfilment of standard conditions precedent, including internal approvals and the completion of share transfer documentation.
At the time of reporting, Iondrive’s share price was $0.019.