The company has entered into a sale and purchase agreement with Westgold Resources Ltd (ASX:WGX) subsidiary Aragon Resources Pty Ltd to sell the 20% interest in the two JV tenements.
This interest is held by FEL’s wholly-owned subsidiary Jackson Minerals Pty Ltd.
“Pleased to crystallise value”
FEL chairman Tony Sage said, “We are pleased to crystalise value for these tenements via the receipt of Westgold shares.
“This transaction gives us the option to continue to participate in the projects indirectly via our shareholding or we can monetise it to assist us in funding the ongoing exploration activities at our prospective Pilbara tenement package.”
FEL will receive 200,000 fully paid ordinary shares in Westgold Resources upon completion of the transaction.
These shares have a value based on today’s trading price of approximately $401,000.
FEL anticipates a further cash injection of $645,000 from the Deception Hill Royalty that is due in approximately two weeks.