Haranga Resources Ltd. on June 1 said it signed a deal to off-load its Selenge iron ore project in Mongolia to Ambaatar Bilguun.
The company's wholly owned unit, Haranga Iron LLC, holds an 80% interest in Haranga Khuder LLC, which holds the Selenge project.
Under the terms, Haranga will receive a nonrefundable deposit of US$100,000 to be received on deal execution and US$1 million upon receiving shareholder and other regulatory approvals.
The buyer will pay Haranga another US$3.5 million twelve months after the first receipt of proceeds from the sale of products from Selenge.
In addition, Haranga said Brian McMaster resigned as nonexecutive chairman of the board, while Peter Youd was added as a director, with immediate effect.
Youd is an executive director and CFO of First Graphite Ltd.