Pantoro (ASX:PNR) announced a binding agreement to sell the Halls Creek Project in Western Australia to Kimberley Minerals Group for $8 million.
The transaction with KMG Minerals, part of the KMG Group, strengthens Pantoro's financial position aas it focuses on its Norseman Gold Project.
The Halls Creek Project sale involves a payment structure over 24 months, starting with a $3 million payment upon completion, followed by $2 million after 12 months and another $2 million after 24 months.
Additionally, a 1% royalty capped at $1 million will commence 24 months post-completion. Pantoro retains a 15% free carried interest in nickel and platinum group elements on the project tenure, extending to the first production.
This interest offers further potential benefits from the project's mineral rights without additional costs.
Managing Director Paul Cmrlec commented, "The Halls Creek Project was the first full mine developed by Pantoro in 2015 and was a critical element in the evolution of the company. We firmly believe that now is the right time to focus our effort and resources on growth at Norseman, which provides the best upside potential for our investors."
The sale is expected to conclude within the current quarter, enabling Pantoro to allocate resources towards the development of the Norseman Gold Project.
At the time of reporting, Pantoro's share price was $0.1275.