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Rey Resources to sell Duchess Paradise thermal coal project for A$24M

Rey Resources Ltd. said July 30 that it agreed to sell the Duchess Paradise thermal coal project in Western Australia, through the sale of its subsidiary Blackfin Pty. Ltd., to Yuanrun Investment Ltd. for A$24 million.

The Duchess Paradise project covers an area of approximately 197 square kilometers, which includes three exploration tenements.

Under the deal, Rey will receive an initial A$2 million payment, with the remaining A$22 million structured as a loan, convertible into shares of a future listed company holding the Duchess Paradise project.

The agreement also envisages the listing and the construction of a coal mine within a three-year period, extendable by up to a further 24 months.