Star Minerals (ASX:SMS) has confirmed that all conditions precedent have been satisfied for the divestment of its West Bryah Copper-Gold Project to Catalyst Metals (ASX:CYL).
The transaction, valued at a total consideration of $2.8 million, marks a significant structural shift for the explorer as it streamlines its portfolio to focus on high-priority assets.
The deal is structured through a combination of liquid assets and equity.
Under the finalised terms, Star Minerals receives $1 million in cash alongside 230,536 fully paid ordinary shares in Catalyst Metals.
Catalyst has cemented a long-term interest in Star’s success by completing a $1 million strategic placement.
The investment, executed at an issue price of 62 cents per share, provides Catalyst with a 6.59% substantial stake in the company.
The capital injection is designated for the aggressive advancement of the Tumblegum South Gold Project, located south of Meekatharra.
By offloading non-core assets, the company aims to accelerate its transition toward production without further diluting existing retail shareholders.
"The sale of the company’s non-core West Bryah copper-gold project provides additional, non-dilutionary cash to enable us to progress the Tumblegum South Gold Project and develop new opportunities," stated Star Minerals CEO Ashley Jones.
At the time of reporting, Star Minerals' share price was $0.053.