Metminco Limited (ASX:MNC) expects that settlement of the US$1 million sale of its Mollacas assets in Chile will be completed later this month.
The company, which is soon to be renamed Los Cerros Limited, also expects that the sale funds of approximately A$1.5 million will be repatriated at that time.
Delays due to civil unrest
There have been some recent delays in settlement due to disruption caused by civil unrest in Chile, however, both parties are working towards completion as soon as practicable.
Metminco’s shares are up slightly in early trade to 9.9 cents.
On October 22, 2019, Metminco announced that it had signed a non-binding term sheet for the sale of a legacy project called Mollacas in Chile.
This sale, which comprises mineral title, surface title and water rights, is subject to the satisfactory completion of due diligence by the purchaser.
Due diligence nearing completion
The company advises that due diligence is nearing completion and that it is not aware of any material issue that might cause further delay or cancellation of the transaction.
At the time Metminco’s managing director Jason Stirbinskis said, “This is a very sensible deal for both Metminco shareholders and for the acquirer, 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 underway at our Chuscal gold target.”