Metalicity Ltd. completed the sale of its Admiral Bay and Lennard Shelf zinc projects in Western Australia to newly created Canadian subsidiary Kimberley Mining Ltd, according to a Sept. 11 release.
Metalicity said it received the first cash payment related to the transaction of C$500,000 of a total of up to C$12.5 million in cash, subject to successful completion of Kimberley Mining's initial public offering on the TSX Venture Exchange and certain milestones.
In addition, Metalicity closed the first tranche of its C$2 million seed capital raising, with the second and last tranche expected to be finalized within the next two weeks. Funds raised will be used for Kimberley Mining's proposed IPO and TSX-V listing.
Kimberley Mining is planning a C$25 million IPO in September, priced at 80 cents per share, with Metalicity expected to retain an about 40% interest in the company. Proceeds will go toward drilling and feasibility studies, primarily at Admiral Bay.