Catalina Resources (ASX:CTN) Announces Agreement with KoBold for Kookynie West Project Sale

Highlights

• Catalina Resources has executed an Asset Sale Agreement (ASA) with KoBold Tjantjuru Pty Ltd for the Kookynie West Project.
• The project includes the Golden Chimney exploration tenement (E40/378).
• The agreement features a series of non-refundable cash deposits totalling AU$405,000 over three years, with an initial payment of AU$40,000.
• Catalina will receive a 1% net smelter return royalty, upon execution of the agreement.

Catalina Resources Ltd (ASX:CTN) has executed an Asset Sale Agreement (ASA) with KoBold Tjantjuru Pty Ltd to divest its interest in the Kookynie West Project, including the Golden Chimney exploration tenement (E40/378). The agreement will remain conditional until KoBold completes its due diligence investigations to its satisfaction and provides written confirmation to proceed with the acquisition of the exploration rights.

This divestment allows CTN to focus its efforts and resources to high-priority projects, in line with its strategy of continuous evaluation and prioritisation of its project portfolio.

Terms of the agreement

Under the terms outlined in the ASA, KoBold will make a series of non-refundable cash deposits. These include an initial payment of AU$40,000 within 10 business days of the agreement’s effective date, followed by subsequent payments of AU$50,000 on or before the first anniversary, AU$60,000 on or before the second anniversary, and AU$255,000 on or before the third anniversary.

On the completion date, KoBold will pay a purchase price of AU$405,000, adjusted for any deposits already made. Furthermore, upon the transfer of the exploration rights, KoBold will grant Catalina a 1% net smelter return royalty. KoBold has the option to buy back half of this royalty for AU$1,000,000 at any time.

From the effective date until the completion date or termination of the agreement, KoBold has agreed to maintain the exploration rights in good standing, meeting all legal financial commitments, such as taxes, rents, and expenditure obligations, as well as charges associated with the exploration rights.

The ASA also grants KoBold the right to terminate the agreement at any time, at its sole discretion, by issuing written notice to Catalina.

CTN shares traded at AU$0.003 apiece at the time of writing on 4 November 2024.