Exploration company Minotaur today sold its 55 per cent controlling interest in the Tunkillia gold project in South Australia to Mungana Goldmines for $6 million in cash and shares.
Mungana will take over as manager in a joint venture with Helix Resources.
The sale will transfer ownership of Minotaur’s shareholding in its wholly-owned subsidiary Minotaur Ventures, operator and manager of the Tunkillia Joint Venture.
Minotaur will also transfer to Mungana two of its exploration licenses at Deception Hill and Cooritta.
In return, Mungana will pay $4 million in cash and $2 million payable in Mungana ordinary shares.
The sale is part of Minotaur’s strategy to build up cash reserves without shareholder dilution and to fund exploration in north Queenland’s Cloncurry region and South Australia’s Gawler Craton.
In a statement, Minotaur said it considered Mungana had the financial capacity, technical and operational expertise to further enhance the value of the Tunkillia resource, and it was pleased to retain an exposure to the project through its Mungana holding.
Minotaur shares were up 1 cent to 16 cents at 1:45pm WST, while Mungana shares remained steady at 60 cents.
