EMS:Thomson Project Sold for $200,000 Plus 1.5% NSR
Released
Released
Announcement PDF
ASX Announcement
ASX:EMS
Level 8, 210 George Street
Sydney NSW 2000
1300 737 760
info@easternmetals.com.au
24 June 2024
THOMSON PROJECT SOLD FOR $200,000
PLUS 1.5% NET SMELTER ROYALTY
Divestment of non-core asset will streamline Eastern Metals’ asset portfolio, enabling
it to focus on exploration of its high-potential Cobar and Arunta projects
HIGHLIGHTS
Eastern Metals has finalised a binding agreement to sell its Thomson Project in NSW to
Legacy Minerals Holdings Ltd (ASX:LGM) for $200,000 in cash plus a 1.5% royalty.
The cash sale allows Eastern Metals to focus its funds and human resources on the
exploration of the Cobar and Arunta Projects.
Approvals process is underway to drill newly identified high-priority targets at the Cobar
Project in NSW, with work programs also progressing at the Arunta Project in the NT
following the recent award of a co-funding grant from the NTGS 1.
Eastern Metals Ltd (ASX: EMS) (“Eastern Metals” or “the Company”) is pleased to announce that it
has signed a binding Heads of Agreement (“HoA”) for the sale of the Thomson Project in New South
Wales to Legacy Minerals Holdings Ltd (ASX: LGM, “Legacy Minerals”) for $200,000 in cash and a
1.5% Net Smelter Royalty (“NSR”).
The sale will streamline Eastern Metals’ asset portfolio, enabling the Company to focus its funds and
resources on the high-potential, advanced base metals Cobar Project in New South Wales and Arunta
Project in the Northern Territory.
Eastern Metals’ Chief Executive Officer Ley Kingdom said: “The sale of the Thomson Project to
Legacy Minerals represents a great outcome for Eastern Metals, providing the Company with an allcash consideration of $200,000 plus a 1.5% NSR, while enabling us to prioritise our efforts on the more
advanced assets within our portfolio.
“The prioritisation of time and funds is vital for successful exploration companies. With our prospective
portfolio of tenements, we are constantly evaluating which projects have the best potential for
exploration success and shareholder growth. In the near future, this includes continuing to progress
Browns Reef and Home of Bullion through target generation and drilling. We wish Legacy Minerals all
1 Eastern Metals Ltd (ASX: EMS) ASX Announcement 11 June 2024, ‘Successful NTGS Co-Funding Collaboration Grant’
ASX:EMS | info@easternmetals.com.au | easternmetals.com.au
the best with the acquisition, which represents a complementary land position to their existing projects
in NSW where they are actively exploring on a number of fronts.”
Details of the transaction
The total consideration is:
$200,000 cash payable to EMS, with $50,000 payable within seven days of the HoA execution
date, and $150,000 payable on completion; and
A 1.5% NSR, on all minerals produced with a buy-back option for:
(i) Half of the NSR (0.75%) for $2M at any time; and
(ii) The remaining half of the NSR (0.75%), for $4M at any time.
Upon completion, Legacy Minerals will hold a 100% unencumbered interest in the two Thomson
Project tenements, EL9190 and EL9194.
Completion will be subject to a number of standard conditions precedent (if required), including any
approvals required by the ASX, Ministerial consent and other conditions precedent usual for this type
of transaction.
Authorisation for this Announcement
This announcement has been authorised for release by the Company’s Disclosure Officers in
accordance with its Disclosure and Communications Policy which is available on the Company’s
website, www.easternmetals.com.au.
Contacts
For more information, please contact:
Ley Kingdom
Chief Executive Officer
leykingdom@easternmetals.com.au
M: 0407 487 409
ASX:EMS | Page 2 of 2
Nicholas Read
Read Corporate
nicholas@readcorporate.com.au
P: 08 9388 1474
M: 0419 929 046
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