Rincon Resources signs West Arunta joint venture

• Rincon Resources has signed a binding heads of agreement to divest 90% of its West Arunta Project to Maverick Minerals Australia.
• The total consideration for the transaction comprises $600,000 upfront and $500,000 in deferred consideration
• The partial divestment allows the company to dedicate funds and focus exploration activities on its core Telfer South and Crackerbox projects.

Rincon Resources (ASX:RCR) has signed a binding heads of agreement with Maverick Minerals Australia (ASX:M96) to divest 90% of its interest in the West Arunta Project for up to $1.1 million in cash and shares.

The transaction contrasts with the company's previous complete disposal of its Laverton Project, as Rincon will retain a 10% free-carried interest in the West Arunta Project until a decision to mine is made.

"This transaction represents an attractive outcome for the company, securing cash and equity consideration while retaining a 10% free-carried interest in the West Arunta Project," said Rincon Technical Director Michael Griffiths.

The initial consideration totals $600,000, which includes $100,000 in cash and $500,000 in fully paid ordinary Maverick shares subject to a six-month escrow.

Following the announcement, the Rincon Resources share price was unchanged at $0.016.

The remaining $500,000 in deferred consideration will be paid in two stages of fully paid ordinary Maverick shares, with the first $250,000 due upon the completion of an initial drilling programme at the West Arunta Project.

The company stated that the partial divestment paves the way to dedicate further funds towards its core exploration assets, which include the Telfer South Gold-Copper Project and the Crackerbox Project.