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Nyota Minerals offloads its last mining assets

The former owner of the Tula Kapi gold asset in Ethiopia is now a cash shell that is set to move into the restaurant-focused online discounts sector
Transaction agreement
Funds from the dispoal will be used to provide additional working capital for the company

Nyota Minerals Limited (LON:NYO, ASX:NYO) is to sell its 70% interest in KEC Exploration to Christopher Reindler, its minority shareholder, who is a director of KEC.

KEC controls the various tenements in Italy that comprise the Ivrea nickel project.

Once this disposal has been completed, Nyota will be a pure cash shell. In November of last year it announced the potential acquisition of Bigdish Limited, which would count as what is known as a reverse takeover in the UK and a back-door listing in Australia.

The purchaser has agreed that Nyota will be under no obligation to pay for any further work on the tenements, save for potential contributions of €12,500 towards the tenement licence renewal fee and a further contribution of €7,500 towards the Galerno licence renewal fee.

Nyota will retain a 3% net smelter return (NSR) payable on future sales from the Ivrea nickel project. Additionally, the agreement provides for a buy-back of the NSR by the purchaser for A$200,000 in the first two years and A$400,000 in the third and fourth years following execution of the agreement.

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