Legacy Minerals (ASX:LGM) entered into a binding agreement to divest its 100% interest in the Glenlogan Project (EL9614) to Agricultural Equity Investments.
Located in the highly prospective Lachlan Fold Belt of New South Wales, approximately 55km south of the renowned Cadia-Ridgeway Mine, the sale represents a strategic move by the explorer to crystallise value from its non-core assets.
The transaction structure is designed to provide immediate capital while maintaining significant upside potential for shareholders through a robust performance-based payment framework.
Under the terms of the agreement, Legacy Minerals will receive an initial fixed consideration of $150,000 in cash.
This is split into a $50,000 payment due within three days of the binding agreement and a further $100,000 contingent upon the NSW minister's consent to the licence transfer.
The company retains exposure to the project’s future exploration success via a contingent payment of $5 per ounce of gold equivalent.
The performance payment is triggered upon the achievement of a JORC-compliant measured mineral resource estimate of at least 1 million ounces and is capped at $10 million.
CEO and Managing Director Christopher Byrne emphasised that this divestment allows the company to sharpen its focus and direct management attention towards its flagship Mt Carrington Project.
At the time of reporting, Legacy Minerals' share price was $0.175.