Rincon Resources (ASX:RCR) entered into a binding agreement to dispose of its Laverton assets in Western Australia's Eastern Goldfields, signalling a major strategic shift in its exploration portfolio.
Under the terms of the deal, Galleon Metals will acquire the Laverton tenements and assume all associated exploration costs.
In exchange, Rincon is set to receive $500,000 worth of Galleon shares following the latter’s planned initial public offering later this year.
The transaction allows Rincon to maintain an indirect interest in the assets while offloading the capital intensive nature of their development.
The divestment is designed to streamline the company’s focus, allowing management to redirect vital funding and resources toward its flagship Telfer South Gold-Copper Project in the Paterson Region and the Crackerbox assets in the Murchison Goldfields.