Australian resources company Krucible Metals has accepted a non-binding cash offer from Daton Group to purchase its Queensland phosphate tenements for $12m.
Daton had proposed to acquire 13 phosphate bearing tenements that include the Korella deposit and mining lease located in the mineral rich Mount Isa area of north western Queensland.
Krucible has also announced the termination of a joint venture with Getax International of Singapore.
In August 2012, Krucible partnered with Getax to develop the Korella phosphate resources and others in a deal valued at $43m.
Krucible CEO Allan Branch stated, "We are obviously disappointed that they were unable to complete their due diligence exercise on time, even with several extensions, but Krucible has its shareholders to consider and must quickly create wealth from its phosphate assets."
Krucible owns more than 20 rock phosphate hosting tenements at Korella, including exploration applications, exploration permits and a mining lease.
This near-to-surface resource is ready to mine and is adjacent to existing infrastructure.
Daton, a producer of coal based compounded fertiliser in Queensland, now plans to set up a new fertiliser plant in Brisbane.
The purchase of Korella phosphate tenements enables the company to access a long-term stable supply of high grade phosphate resource.
The acquisition is conditional upon factors such as compliance to regulatory requirements of the Australian Stock Exchange and approval of the Foreign Investment Review Board (FIRB).
Image: The city of Mount Isa came into existence because of the vast mineral deposits found in the area. Credit: Tennis expert.