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Highlights
- Moho Resources (MOH) finalizes sale of Empress Springs Project for up to $1.258 million.
- Initial cash payment of $258,000, with an additional $1 million due in 12 months.
- Retains 1% net smelter royalty (NSR) for future potential benefits.
Moho Resources (ASX:MOH) has taken a strategic step by entering a binding Sale and Purchase Agreement for the divestment of its Empress Springs Project in Western Queensland. The transaction, valued at up to $1.258 million, is structured to provide both immediate and future financial benefits.
The agreement with Qld Aus Graphite Pty Ltd (QAG) includes an upfront cash payment of $258,000 upon completion, followed by a deferred cash payment of $1 million, which is scheduled to be paid 12 months later. Additionally, Moho Resources will continue to benefit from the project’s future potential through a 1% net smelter royalty (NSR), which will be formally documented in a royalty deed.
The completion of this sale is expected to take place within 10 days after the necessary conditions precedent are met or waived.
Strategic Portfolio Optimization
The decision to divest Empress Springs aligns with Moho Resources' broader strategy of optimizing its portfolio and focusing on opportunities that align with its financial capabilities. Given the high exploration costs and extensive administrative commitments required for the Empress Springs tenements, the transaction allows Moho Resources to reallocate resources toward projects with stronger long-term potential.
Empress Springs comprises a collection of remote tenements that have been historically challenging to develop due to financial and operational constraints. By unlocking capital from this asset, Moho Resources is reinforcing its commitment to shareholder value and maintaining a disciplined approach to exploration and investment.
A Look Back at Empress Springs
Moho Resources (MOH) initially acquired the Empress Springs Project through a joint venture with IGO Ltd (ASX:IGO) in 2018. Under the agreement, Moho Resources had the opportunity to earn up to a 70% interest in three key mineral exploration permits—EPM25208, EPM25209, and EPM25210.
Following its IPO, Moho Resources conducted multiple exploration programs to fulfill the earn-in conditions of the joint venture. Additionally, the company expanded its holdings by securing adjacent tenements (EPMs 27193 - 27200 and EPMs 27816 - 27821), further increasing the project’s land footprint.
With this sale, Moho Resources remains well-positioned to explore new opportunities while retaining a stake in Empress Springs' future through the NSR. The move supports the company’s long-term growth vision, ensuring that its portfolio remains aligned with financial and operational objectives.
