Australian exploration company Impact Minerals has agreed to divest a 75% interest in its 100%-owned Commonwealth gold-silver-base metals project in New South Wales (NSW), Australia, to Burrendong Minerals.

Under the agreed terms, Impact will receive A$25,000 in non-refundable option fee for an eight-week exclusivity period from Burrendong.

This will be used for the completion of a share purchase agreement (SPA) and joint venture agreement.

On completion of the SPA, Burrendong will pay a further A$250,000 in cash to Impact. Burrendong will then have nine months period to complete the ASX listing.

Upon Burrendong’s listing, Impact would receive another A$250,000 in cash and a 19.9% stake in the newly listed business.

The Australian firm will also hold a 25% interest in the Commonwealth project, which will then be operated under an incorporated joint venture (JV) with Burrendong.

Impact Minerals managing director Dr Mike Jones said: “The sale of a 75% interest in our long-held Commonwealth Project in New South Wales is a very good outcome for the company and its shareholders.

“It allows us to continue our strategic change in focus to the large and prospective portfolio of battery and strategic metals projects in Western Australia which we have put together over the past 18 months and in addition also gives Impact considerable exposure to the upside potential of the Commonwealth project into which we have invested financial and considerable intellectual capital.”

Covering more than 500km² within the prolific Lachlan Fold Belt copper-gold province in NSW, the Commonwealth Project is a high sulphidation, gold-rich VMS deposit.

Based on Impact’s work, the project has defined inferred resources of 88,800oz of contained gold, and 3.3Moz of contained silver with significant zinc and lead credits.