Zenith Minerals (ASX:ZNC) (“Zenith” or the “Company”) is pleased to announce the sale of its Develin Creek Copper-Zinc Project in Queensland to QMines Limited (ASX:QML), the owner of the nearby Mt Chalmers copper-gold project. This strategic sale provides Zenith with immediate liquidity and enables the Company to maintain its focus on the development of its lithium assets.
Legally Binding Agreement: A legally binding Term Sheet has been executed with QMines Limited for the sale of the Develin Creek Copper-Zinc Project.
Acquisition Terms: QMines Limited will acquire a 100% interest in the Develin Creek Copper-Zinc Project for up to $4.5 million in cash and shares, along with additional work commitments.
Initial Payment: An upfront payment of $1.2 million in cash and $1 million worth of QMines shares will be made to Zenith for a 51% interest in the project.
Work Commitments: Within the first 12 months, QMines must complete 500 meters of diamond drilling and a detailed metallurgical study on the existing Develin Creek Inferred Mineral Resource.
Additional Interest: At the end of 12 months, QMines will make a further payment of $1.3 million in cash and issue another $1 million worth of QMines shares to Zenith for an additional 49% interest in the project (Additional Interest Completion Date).
Use of Funds:
The funds received from this divestment will be strategically allocated towards advancing Zenith’s lithium and gold project portfolio and for working capital purposes.
Executive Chair David Ledger said:
"We are pleased to advise of the divestment of the Develin Creek Copper-Zinc Project to QMines. The divestment provides Zenith with immediate cash but more importantly allows us to continue our focus on our lithium assets. This has been a deliberate reallocation of our resources where we believe we can maximise value for our shareholders. We will continue to review the asset base and monetise projects at the appropriate times.”
Zenith Minerals Limited (ASX:ZNC) is an Australian-based minerals exploration company leveraged to the increasing global demand for metals critical to the production processes of new energy industrial sectors.