20 October 2014
Minotaur Exploration Ltd
ACN 108 483 601
Enquiries regarding this Report can be directed to:
Andrew Woskett
Managing Director
or:
Dr Tony Belperio
Director,
Business Development
Address
Level 1
8 Beulah Road
Norwood, SA 5067
Australia
T +61 8 8132 3400
F +61 8 8132 3499
Agreed sale of Gypsum Project
Minotaur Exploration Limited (Company) (ASX: MEP) is pleased to announce that its wholly owned subsidiary Minotaur Operations Pty Ltd (Minotaur) has executed a conditional Sale and Purchase Deed for the sale of its Lake Purdilla gypsum deposits in South Australia comprised in EL
4697 and EL 5398.
The Deed marks an important step towards commercialisation and divestment of the Company's industrial mineral assets that include kaolin, halloysite and silica sand in addition to the gypsum deposits subject of this agreement.
Conditions precedent to the sale are:
The buyer completing a port or transshipment study in relation to the future shipping of minerals from the tenements by 2 May 2015, with the results being to the satisfaction of the buyer; and
Ministerial consent to the dealing evidenced by the Deed within three months of the buyer satisfactorily completing the port or transshipment study referred to above.
The purchase price is $4,800,000 in cash to be paid by the buyer as follows:
50% upon completion of the tenement transfers; and
E [email protected] | W www.minotaurexploration.com.au
the remaining 50% upon grant of a Mining Lease in relation to at least one of the tenements (Mining Payment). If a Mining Lease is not obtained within 12 months after completion of the tenement transfers, and for each subsequent 12 month period that passes
that a mining lease is not obtained, the buyer must pay Minotaur an
amount equal to one-tenth of the Mining Payment.
Port study details are to be provided to Minotaur and, upon the buyer proceeding with development of a port or transshipment facility for the shipping of minerals from the tenements, the buyer is required to offer Minotaur Industrial Minerals Pty Ltd (Minotaur Industrial Minerals) (a wholly owned subsidiary of the Company) access to the facility upon commercial terms to be negotiated.
Subject to satisfaction of the conditions precedent referred to above and completion, the sale demonstrates the Company's ability to leverage its assets to improve shareholder value and progress projects at a time of extreme risk aversion in capital markets. For Minotaur Industrial Minerals, this agreement has the additional benefit of advancing the investment and development case for its nearby globally-significant kaolin and halloysite assets through provision of a common port logistic solution.
Andrew Woskett
Managing Director