As part of its exit from the mining sector, Nevada Iron Ltd. will sell its Buena Vista iron ore project in Nevada. The company also renegotiated terms related to its acquisition of SportsHero Pte. Ltd.
The company said Sept. 27 that it executed a binding heads of agreement to sell project holder Nevada Iron Holdings Pty. Ltd. to New Nevada Resources LLC and Rhodes Investment Ltd.
Mick McMullen, a director and shareholder at Nevada Iron, is the president of Rhodes Investment, while former director Heath Rushing is a managing member at New Nevada Resources.
As part of the deal, the buyers will assume at least A$800,000 of debt, pay A$100,000 in cash at settlement and make staged payments totaling US$750,000 within two years of production starting at Buena Vista.
The Buena Vista sale is conditional upon the success of the SportsHero transaction.
Under the share purchase agreement, Nevada Iron will acquire 100% of Sportz Hero Pty. Ltd. by issuing 36.0 million post-consolidation shares and 72.0 million options, exercisable at 5 cents apiece until Aug. 31, 2019.
Nevada Iron plans to raise at least A$2.5 million via a private placement to fund the acquisition as well as to recomply with ASX listing results and meet conditions related to the agreements. The company will also undertake a 1-for-2 share consolidation.
Nevada Iron will seek approval at a general meeting slated for November for the acquisition and a change in nature and scale of its operations.