Indago Resources has negotiated a deal to sell two of its non-core assets to Subiaco-based Lumacom in a cash and scrip deal valued at nearly $3 million.
The deal follows Indago's announcement last week that it had started a review of the company in a bid to slow down cash burn and reduce costs. It also said it had decided to offload three projects.
Today, Indago said it struck a deal to sell both the Snowbird base metals project in Canada and the Mid Continent nickel project in the US to Lumacom for $500,000 cash and 10 million, three-year options valued at three cents each.
Lumacom has also agreed to pay a further $2 million in cash when the projects come into production.
In total the deal, which is subject to due diligence, is valued at $2.8 million.
"This sale delivers cash into the company as well as having further upside via options in Lumacom and a potential windfall if either of the projects is developed in the future. It's a win-win situation for Indago," director Tim Kestell said.
He added that the company is in advanced talks to sell its uranium assets in Tanzania while the review of the gold assets in the country is ongoing.
Shares in Indago climbed 2.5 cents to 34.5c while shares in Lumacom were unchanged at 2.3c at 14:50 AEST.
