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Meteoric Resources divests non-core Canadian assets for more than $1.5 million

The disposal will allow the company to focus on its high-grade, Ontario-based cobalt projects.
Meteoric Resources divests non-core Canadian assets for more than $1.5 million
Meteoric will have upside exposure to exploration success across TopTung’s portfolio

Meteoric Resources NL (ASX:MEI) has entered into a conditional sale agreement with TopTung Ltd (ASX:TTW) to dispose of its non-core Canadian nickel-copper projects.

The transaction comprises the sale of the Midrim and LaForce projects for an issue of 31.25 million TopTung shares which, at the last trading price of 4.9 cents a share, is valued at $1,531,250.

Meteoric will hold about $4 million in cash and listed shares following completion of the transaction, enabling it to pursue both exploration of its cobalt portfolio and other investment opportunities.

READ: Meteoric Resources to drill high-priority Joyce project

Meteoric managing director Andrew Tunks said the asset disposal was a fantastic result for the company.

“Following our move into the Canadian cobalt space, our focus has shifted from Midrim and LaForce as key assets.

“We are thrilled to have entered into an agreement with TopTung which is focused more on the nickel-copper space and as such, better positioned to further these projects.

“Our shareholders will benefit from TopTung’s future success.”

READ: Meteoric Resources discovers more drill targets with geophysics

Meteoric’s sale agreement will dispose of its assets to Canadian Nickel Corporation Pty Ltd (CNC) which, as part of a broader play in Quebec’s Belleterre-Angliers greenstone belt, will be wholly acquired by TopTung.

CNC also has the option to acquire the Lac Kelly project, in the same district as TopTung’s existing Alotta project, from Globex Mining Enterprises Inc (TSX:GMX).

A total of 47 million shares will be issued by TopTung to acquire the three advanced projects.

 

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