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Highlights
- King River has received a cash payment of AU$2.5 million for the sale of the Speewah Project to Tivan.
- With this second payment, the cash position of KRR stood at AU$5.25 million, as on 27 July 2023.
- As part of the transaction, the deferred consideration of AU$5 million remains owing to KRR.
Gold explorer King River Resources Ltd (ASX: KRR) announced to have received a second cash payment of AU$2.5 million from Tivan Limited (ASX:TVN) for acquiring Speewah Project.
In February 2023, a binding term sheet was signed between KRR and Tivan, under which the latter acquired the former’s Speewah Vanadium-Titanium-Iron Project. The total consideration for the transaction is AU$20 million, including the issue of 100 million Tivan shares to KRR at an issue price of 10 cents per share.
King River intends to use AU$10 million raised from the transaction in the following manner -
Image source: Company update, 20 February 2023
In today’s (27 July 2023) update, KRR shared that it has already received the following instalments –
- Cash payment of AU$2.5 million in April this year.
- AU$10 million via the issue of 100 million Tivan shares at 10 cents per share in April this year. These shares are subject to voluntary escrow for a period of two years.
The deferred consideration of AU$5 million is left and is meant to be paid 12 months after the execution of the agreement. The tentative date of the agreement execution is 16 February 2024.
With the latest payment, KRR has a cash position of AU$ 5,257,553, as on 27 July 2023.
KRR shares traded at AU$0.010 at the time of writing on 27 July 2023.
