Green Rock Energy (ASX:GRK) has executed an agreement with Eneabba Gas (ASX:ENB) to sell its Ocean Hill hydrocarbon block application in the North Perth Basin, Western Australia.
The Ocean Hill Block divestment will allow GRK to focus purely on its prospective Mahenge Tanzanian Graphite projects, adjacent to Kibaran Resources (ASX:KNL).
Eneabba will make upfront payment of $30,000 on signing of binding agreement; cash payment of $300,000; issue GRK with 40 million Eneabba shares, and will pay applicable native title costs of $75,000.
The transaction is subject to various conditions being satisfied. Upon completion, GRK will have a strengthened balance sheet and a sole focus on its graphite assets.
Two of its three graphite tenements have existing graphite bands mapped with the Tanzanian Geological Survey mapping indicating a 4 kilometre and a separate 1.75 kilometre band of graphite mineralisation.
Potential graphite mineralisation has been identified within a number of prospective horizons totalling close to 50 kilometres of strike.
The Mahenge Projects provide potential for rapid and cheap transformation from discovery, through to resource definition to scoping and off-take.
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