Armour Energy is selling its Ripple Resources portfolio in Northern Australia to unlisted company Auburn Resources.

Ripple currently holds a number of mineral exploration tenements in Queensland and the Northern Territory considered to be prospective for lead and/or zinc.

It includes underexplored land lying between major discoveries at Century and Walford Creek, and the Victoria River Downs prospect in the Northern Territory. 
 
The assets will be transferred in consideration for the issue of 5,600,000 fully-paid ordinary Auburn shares, giving Armour a 12.5 per cent stake in Auburn.

Auburn, 44 per cent owned by DGR Global, holds interests in a range of mineral projects in Queensland and the Northern Territory prospective for copper, gold, lead, zinc, cobalt and nickel. 
 
Armour says the divestment will allow its Board and management to focus their time, and the company’s capital, on its core oil and gas business.

Completion of the transaction remains subject to a number of conditions precedent, including due diligence and necessary shareholder and/or regulatory approvals.