Corrs Chambers Westgarth has advised ASX-listed Straits Resources Limited (Straits) on the sale of its gold project for $40 million in cash and shares.
Straits, which is a mining and exploration company focussed on copper and gold in Australia and Asia, will sell its Hillgrove Antimony-Gold Project to Court Resources WA Pty Ltd (proposed to be renamed Ancoa NL).
Under the acquisition, Straits will receive $20-million of the purchase price in cash, and the balance in shares (both components subject to a successful completion of Ancoa's proposed initial public offering).
Corrs partners Bruce Adkins and Stephanie Daveson said the deal confirmed the demand for rare metals is still hot and hoped that Ancoa's refloat of the Hillgrove asset would withstand volatile equity markets.
"A raft of issues [arose] under the ASX Listing Rules and negotiating of a mutually acceptable completion and payment timetable for Straits shareholders," said Adkins.
Ancoa's IPO prospectus is expected to be lodged with ASIC in early October 2011.