Australia's Straits Resources has ceased operations at Whim Creek in the Pilbara region of Western Australia and sold all exploration tenements to Venturex Resources for A$11m.
The deal includes 106 million fully paid Venturex shares worth A$8m, representing about 19% of Venturex’s issued capital, and fully paid ordinary shares or cash to the equivalent value of A$3m preceding Venturex formally committing to a “decision to mine”, Straits said.
Included in the transaction is all the issued share capital of Straits (Whim Creek), the beneficial owner of the mine, all exploration tenements including the Sulphide Resources at Whim Creek Mons Cupri and the Whim Creek hotel.
The deal does not cover the SX-EW plant, which is subject to an option to purchase agreement with Finders Resources.
Venturex will also acquire the Salt Creek and Balla Balla copper-zinc projects and associated tenements.
The transaction depends on Venturex's due diligence investigations and is subject to necessary approvals from shareholders and the government, Straits said.