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Metminco signs term sheet to sell non-core Chilean assets for $1.5 million

The company is focused on exploring for a multi-million ounce discovery within its Quinchia Gold Project in Colombia.

Metminco Ltd - Metminco signs term sheet to sell non-core Chilean assets for $1.5 million
Metminco recently commenced diamond drilling at the Chuscal Prospect within Quinchia

Metminco Ltd (ASX:MNC) has negotiated key commercial terms and executed a non-binding term sheet for the sale of its legacy and non-core Mollacas asset in Chile to a Chilean company.

Metminco and the acquiror have been negotiating the sale of the Mollacas assets which comprise mineral title, surface title and water rights.

This has culminated in an offer to Metminco of US$1.0 million (about $1.5 million), subject to satisfaction of due diligence by the acquiror.

The term sheet has agreed a settlement date of December 1, 2019 subject to a valid Deed of Release under Chilean laws.

Exploration push in Columbia

Metminco managing director Jason Stirbinskis said: “This is a very sensible deal for both Metminco shareholders and for the acquiror, with both groups working diligently for a timely close to the transaction.

“The recently reformed Metminco business is solely focused on our expansive and highly prospective position in Colombia, and this non-dilutive capital injection of about A$1.5 million will assist to drive our exploration push which has recently commenced with diamond drilling now underway at our Chuscal gold target.”

The parties are working towards completion of a Binding Sale and Purchase Agreement to reflect the Term Sheet, in parallel with completion of due diligence.

Quick facts: Metminco Ltd

Price: 0.105 AUD

ASX:MNC
Market: ASX
Market Cap: $17.48 m
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