Mezzotin Minerals Inc. entered into a definitive agreement to sell its Sabi Star rare earth property in Zimbabwe to a local subsidiary of Hong-Kong-based private investor Max Mind Investment Ltd. for US$125,000 cash.
The buyer is operating the Sabi Star property under a royalty arrangement, which will run to 2020, according to a May 9 release.
Additionally, the company will settle loans received under the tribute agreement by giving a 14.1% stake to the buyer.
The sale is subject to approval from two-thirds of the shareholders and is expected to be complete early July.
Following the sale, Mezzotin intends to look for an acquisition or merger in other industries.