Zenith Minerals Limited (ASX: ZNC) has concluded the sale of its remaining 49 per cent stake in the Develin Creek Copper-Zinc Project to QMines Limited (ASX: QML), marking the end of a two-stage deal initially announced in September 2023.
The sale terms include a cash payment of $975,000 (plus GST) and 10,261,194 fully paid ordinary shares in QMines, valued at $687,500.
These shares are subject to a five-month voluntary escrow period, highlighting the ongoing partnership between the two companies.
This transaction strengthens Zenith’s position as a significant shareholder in QMines, fostering continued collaboration as QMines advances the Develin Creek Project.
The deal’s completion date was extended to September 30, 2024, allowing QMines to secure shareholder approval for the share issuance, which was granted at a General Meeting on September 23, 2024.
Zenith intends to utilise the proceeds from the sale to support the development of its gold and lithium assets.
The company is set to commence drilling at the Dulcie Far North (DFN) Gold Project within the next two weeks, aligning with its strategy to capitalise on high-demand commodities.
Andrew Smith, Managing Director of Zenith Minerals, expressed satisfaction with the transaction’s completion, stating: “This transaction represents the culmination of a productive collaboration with QMines and underscores our ongoing commitment to delivering value to our shareholders. We are excited about the continued growth and development of the Develin Creek project under QMines’ stewardship.”
The sale of Develin Creek allows Zenith to focus on advancing its portfolio of gold and lithium assets, with the upcoming drilling campaign at the DFN Gold Project being a key part of this strategy.