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Nyota Minerals (ASX:NYO) has entered into a conditional agreement to sell its remaining 25% stake in the Tulu Kapi Gold Project in Ethiopia to KEFI Minerals for £750,000 (A$1.34 million) in cash and 50 million KEFI shares.
Proceeds from the sale will be used to further evaluate the Northern Block Licences, including the potential for near term cash flow from mechanised alluvial mining, and on other opportunities in Ethiopia.
The company noted that KEFI had completed a new mineral resource estimation in March and it would have been required to contribute to Tulu Kapi pro-rata to its shareholding, or suffer dilution of its shareholding.
Financing options were insufficient to fund Nyota’s 25% of the new budget, or £325,492, its evaluation of the Northern Blocks as well as working capital requirements.
This led to the decision to sell its interest in Tulu Kapi.