Rey Resources (ASX:REY) will be cashed up following the sale of its Duchess Paradise Coal project in Western Australia's Canning Basin for $21 million in staggered payments.
Current substantial shareholder of Rey, Hong Kong's Crystal Yield Investments with 9.81 per cent will pay $3 million on signing of the share sale agreement, $9.6 million on completion of due diligence and $8.4 million on grant of a Mining Lease.
The deal is subject to Foreign Investment Review Board approval and approval by Rey shareholders.
Post the transaction, Rey will look to develop its our oil and gas prospects, particularly the acquisition in March this year of a further 15% interest in two key Exploration Permits in the Canning Basin, bringing its total interest in the two leases to 25%.
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