UPDATE 2.20pm: Reed Resources will offload its Comet Vale gold project to Crest Minerals for $6 million to focus on its flagship Meekatharra gold project.
The sale includes a one per cent zinc royalty over MacPhersons Resources' Nimbus project.
The sale is subject to due diligence, Crest completing a $13 million capital raising and regulatory and shareholder approvals.
Reed managing director Luke Tonkin said the sale was consistent with the company's strategy of realising value for its suite of attractive non-core assets and concentrating on delivering solid cash flows from its Meekatharra operation.
Comet Vale covers 25sqkm 100km north of Kalgoorlie and includes the historic Sand Queen gold mine, which is on care and maintenance.
It hosts a known resource of 534,000 tonnes at 10.8 grams per tonne gold for 186,000 ounces.
Crest plans to expand the resource and resume operations at the project as soon as practical.Reed shares closed unchanged at 11 cents while Crest shares closed down 1.5 cents, or 10 per cent, at 13.5 cents.
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