Panthera Resources PLC (LON:PAT) has agreed a £1.17mln deal to sell its interest in the Tellerhäuser Underground Mine in Saxony, Germany.
The agreement sees the company sell its 9.7mln shares in Anglo Saxony Mining Limited (ASM) at a price of 12p per share, in return for a cash payment.
Panthera reported the stake in ASM was valued at 8 cents per share in its last accounts.
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Net proceeds from the sale will be used to accelerate the company’s activities in West Africa.
"Panthera has shared a long history with ASM having initially been involved in securing the licence and then retaining a minority stake in the company,” said Mark Bolton, Panthera chief executive.
“In ASM's lead-up to the planned IPO we have taken the opportunity to dispose of this non-core asset and reallocate the funds to our highly prospective gold portfolio in West Africa, which are the focus of our current operational activity.”
He added: “Importantly, the US$1.64mln cash proceeds further strengthen Panthera's balance sheet and will allow us to accelerate our operational activity without the need for further shareholder dilution from the issue of additional shares."