Artemis Resources Ltd (ASX:ARV) has executed a binding sale agreement with Northern Star Resources (ASX:NST) relating to the sale of the company’s interests in the Mt Clement Gold Project in Western Australia for a total of $344,000.
The sale, which remains subject to Ministerial Consent, also includes Artemis retaining a 1% Net Smelter Royalty (NSR).
On completion of the transaction, the current joint venture agreement between Artemis and Northern Star for the project will terminate.
Executive director Alistair Clayton said: “We would like to thank Northern Star for their partnership on this project as part of the joint venture and wish them all success in moving the project forward to a production scenario where Artemis may further benefit via our retained 1% net smelter royalty.
“This transaction represents another step in our ongoing non-core project divestment program.”
Artemis recently received firm commitments to raise $5.6 million after strong participation in its placement from new institutional investors from Australia and the UK, as well as existing shareholders.
The board had sought as a minimum to raise $4.2 million for 60 million shares but retained discretion to issue an additional 20 million shares for another $1.4 million.
Given the quality of investors and large number of bids received, the board chose to take the maximum of $5.6 million.
Funding will be applied to diamond drilling at the Patersons Central Gold Project adjacent to the Newcrest Mining Limited (ASX:NCM) and Greatland Gold PLC (LON:GGP) Havieron discovery in Western Australia.
Drilling at Paterson Central is expected to commence in August.
Funds will also be used for a follow-up exploration drilling campaign at Carlow Castle aimed at increasing gold and copper resources.