Moho Resources is selling its Empress Springs project, about 25km south of Croydon, to Qld Aus Graphite in a deal worth about $1.258 million, plus royalties.

The project is described as being prospective for gold and base metals.

Moho listed on the ASX in 2018 with the Empress Springs project joint venture with IGO, under which Moho could earn up to a 70 per cent interest in three mineral exploration permits: EPM25208, EPM25209, and EPM25210.

Following its IPO, the company conducted exploration programs that fulfilled the relevant earn-in requirements.

Moho also staked adjoining tenements (EPMs 27193 – 27200 and EPMs 27816 – 27821), which expanded the land size of the project.

Announcing the sale deal today, Moho said the project encompassed remote tenements with high exploration costs, which did not align with its financial strategy and capacity.

‘Furthermore, the administrative obligations have consumed significant time and resources,’ it stated in an update to the ASX.

‘The sale of Empress Springs aligns with Moho’s strategic objective of realising value from its existing portfolio while seeking new project opportunities that will benefit shareholders.’

Under the terms of the binding agreement executed, Qld Aus Graphite will pay Moho a total of $1.258 million, which includes an initial payment of $258,000 in cash at the time of acquisition completion.

An additional $1 million is payable as a deferred cash payment 12 months following completion.

Upon completion of the transaction, QAG will also grant Moho a 1 per cent net smelter royalty on the area covering the project.

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