Malagasy Minerals has struck a deal to sell its stake in a Madagascar graphite project to joint venture partner Energizer Resources for $1.8 million plus shares.
The explorer said the sale of the 25 per cent shareholding in the Molo project would allow it to focus on its fully owned graphite tenements on the African island nation in the Maniry project.
It would also continue its core focus of exploring for nickel-copper-PGM deposits across the wider project area.
Canada's Energizer has agreed under a memorandum of understanding to pay the cash and shares in three tranches.
Malagasy chairman Guy LeClezio said: "It provides us with a short term, low-risk return on the project, whilst at the same time continuing to give us exposure to any future development through a series of benchmark payments.
"Our partners Energizer have done an outstanding job to advance the project to a point that it makes sense for them to take the next step on a 100 per cent basis and which will better allow them to seek funding and supply partners for the project," Mr LeClezio said.
Malagasy shares were up 0.1 cents to, or 3.7 per cent, to 2.8 cents at 10.08am.