Central Iron Ore Ltd. said May 25 that it agreed to sell the South Darlot gold project in Western Australia to Kingwest Resources Ltd., an ASX hopeful, for A$580,000.
Under the terms, Kingwest will issue 2.9 million shares to Central Iron Ore at an IPO value of 20 cents apiece. The transaction is subject to Kingwest securing a minimum subscription of A$5 million from its IPO, as well as receiving approval from the ASX for listing.
Kingwest is mainly focusing on exploration of gold and base metals deposits in Western Australia. The company will use the proceeds from the IPO to advance drilling and exploration on its Crawford and Emperor projects, scoping studies and ongoing working capital requirements.
