Barclay Pearce Capital would like to provide the following update for Resources & Energy Group Limited (ASX: REZ):
- REZ has entered into a Share Sale Agreement to sell its remaining interest in the Radio Gold Mine Project in Western Australia for $1.5m to Summit Resource Holdings Pty Limited (Summit).
- Summit is also acquiring the interests held by Bullfinch One Pty Limited through a farm in agreement (refer to REZ’s ASX release dated 1 August 2019), and will be 100% owner of Radio, the farm-in agreement will be consequentially terminated on settlement.
The additional funds generated from the sale of the remaining Radio interests will allow REZ to continue to pursue its highly prospective East Menzies Gold Project. It will also enable REZ to put further managerial resources into the Mount Mackenzie project which at current gold prices is now looking highly profitable.
The acquisition by Summit is subject to due diligence and ministerial consent with completion and settlement due in 30 days. Summit must provide a non-refundable $50,000 deposit within 3 business days.
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