Macro Metals sells Agbaja Iron Project for US$5.7M
- Macro Metals entered into a non-binding term sheet to sell 100% of its shares in KCM Mining, the registered owner of the Agbaja Iron Ore Project in Kogi State, Nigeria, to RSIN Nigeria for a purchase price of US$5.7 million.
- Following the announcement of the divestment agreement, the Macro Metals share price was unchanged at $0.005.
- The company stated that the transaction enables it to solely focus on its Western Australian mining services and resource development businesses.
Macro Metals (ASX:M4M) executed a non-binding term sheet to sell 100% of its shares in KCM Mining, the registered owner of the Agbaja Iron Ore Project located in Kogi State, Nigeria, for a purchase price of US$5.7 million.
The proposed transaction includes a cash-free, locked-box structure featuring a US$700,000 escrow down payment alongside a US$350,000 twelve-month holdback.
The net proceeds to Macro Metals are approximately $5.1 million, calculated at an exchange rate of US$0.71 to $1 after estimated transaction costs that are 100% success-based.
Completion of the agreement remains conditional upon executing a definitive share sale agreement, buyer due diligence, community agreement extensions, and title tenement checks.
Macro Metals stated that the divestment allows the business to deploy sale proceeds to accelerate growth in a non-dilutionary manner.
Following the announcement, the Macro Metals share price was unchanged at $0.005.
Macro Metals previously operated under the name Kogi Iron before advancing the Nigerian iron ore project through more than a decade of sustained investment and proprietary phosphorus-reduction research.
