Carnavale Resources agreed to sell 80% of its non-core Grey Dam Ni-Co Project in Western Australia to the Trans Pacific Energy Group.
As part of the agreement, TPEG will pay $100,000 for a two-year option period and will be solely responsible for maintaining the project.
Carnavale's CEO, Humphrey Hale, said the transaction will allow the company to continue focusing on its gold projects while sharing the Grey Dam project's potential upside.
The option is subject to legal and technical due diligence. The option exercise requires a $350,000 cash payment and the issuance of $500,000 in NewGen shares.