Macro Metals sells iron ore project for $8.7M

·       Macro Metals signed a binding agreement to sell 100% of KCM Mining and its Agbaja Iron Ore Project for US$5.7 million.

·       The company expects net proceeds of around $5.3 million, raising its post-completion cash balance to $7.7 million.

·       Divesting the asset allows Macro Metals to focus entirely on its Western Australian mining services and resource development assets.

Macro Metals (ASX:M4M) has executed a binding agreement to sell its wholly owned subsidiary KCM Mining, owner of the Agbaja Iron Ore Project in Nigeria, to RSIN.SG for US$5.7 million.

The binding agreement follows the non-binding term sheet previously executed by both parties on Aug. 17.

The company stated that the divestment enables Macro to solely focus on its Western Australian mining services and resource development businesses and deploy sale proceeds to accelerate growth in a non-dilutionary manner.

Under the agreement, the buyer will pay a non-refundable down payment of US$700,000 into escrow by Nov. 7, with transaction completion scheduled for Dec. 7.

Following the announcement, the Macro Metals share price was unchanged at $0.006.

Macro Metals previously invested in the Agbaja Iron Ore Project for over a decade, completing pre-feasibility studies and trial metallurgical research to reduce phosphorus levels in the ore.

The company has recently shifted its focus towards building a portfolio of iron ore assets in Western Australia, including its Yandi South Iron Ore Project and Extension Iron Ore Project.