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Archer Materials to receive another $250,000 in Leigh Creek sale

Archer is focused on advancing both its materials technology business and its' minerals exploration business.

Archer Materials Ltd (ASX:AXE) has increased the price to $2.25 million from 2.0 million for the sale of its Leigh Creek Magnesite Project in South Australia.

Archer has already received $250,000 and will receive the remaining $2.0 million at completion.

Furthermore, the deadline for the achievement of certain pre-conditions prior to completion has been extended from 31 December 2019 to 30 June 2020.

The differences between the original and amended agreement are summarised in the table below.

$0.25 million for extending the cut-off date

Archer’s chairman Greg English said: “The amended agreement is a great outcome for Archer as it increases the purchase price and time period for the bonus.

Under the original agreement, the buyer was able to extend the cut-off date to 30 June 2020 by paying Archer $500,000 and this amount deducted from the final purchase price.

“We believe that we have achieved a great outcome for Archer shareholders by agreeing to extend the cut-off date to 30 June 2020 and receiving an additional $250,000 for doing so.”