Gold exploration and development company Carnavale Resources on Wednesday announced the planned sale of its E40/394 licence, near Leonora in Western Australia, to US-based KoBold.
The sale formed part of its strategy of crystallising value from noncore exploration assets, while maintaining a strong focus on gold exploration and development at the Kookynie and Ora Banda South projects.
KoBold has an exclusive right to acquire the tenement for A$405 000. KoBold will grant Carnavale a 1% net smelter return royalty upon completion of the exploration rights transfer, half of which may be bought back by KoBold at any time for A$1-million.
Carnavale CEO Humphrey Hale said KoBold had an experienced corporate team that was looking for exploration success in Western Australia.
“The transaction will allow Carnavale to continue our aggressive focus on the Kookynie and Ora Banda gold projects in Western Australia, while allowing us to share in the upside with KoBold on one of our noncore assets,” he said. 