POZ Minerals Ltd. said Dec. 15 that it entered an option agreement with privately held APP Gem Mining Pty. Ltd. to sell its Bulgera gold project in Western Australia.

Under the agreement, which includes a nonrefundable A$10,000 fee paid to POZ Minerals, APP Gem Mining has an exclusive option to purchase 100% of the project until March 15, 2017.

APP can exercise the option by becoming listed on the ASX through an IPO, reverse takeover offer or merger, or by entering a binding agreement with an ASX-listed company.

The company will also pay A$30,000 in cash and A$45,000 in shares to POZ Minerals within five days of exercising the option.

POZ Minerals will retain a 1% net smelter royalty on the Bulgera property.