ASX ANNOUNCEMENT 10 NOVEMBER 2016
DRAGON MINING SELLS KUUSAMO GOLD OY
Dragon Mining Limited (ASX:DRA) ("Dragon Mining" or "the Company") wishes to advise the execution of a conditional Share Sale and Purchase Agreement ("Agreement") with Nero Projects Australia Pty Ltd ("Acquirer") for the sale of its 100% interest in Finnish subsidiary Kuusamo Gold Oy.
The total consideration for the sale is A$500,000, which will be payable to Dragon Mining in two stages. The initial payment will comprise the average value of the land owned by Kuusamo Gold Oy in the area of the Kuusamo Gold Project ("Project") based on two independent valuations. It will be payable three business days after the valuation date, or 1 December 2016, whichever is the later ("Completion"). The remainder of the consideration will be payable when the tenements that comprise the Project are transferred to Kuusamo Gold Oy, within two years of Completion or such later date as may be agreed by the parties.
Dragon Mining's Executive Director Mr. Brett Smith stated, "The sale continues the Company's strategy of focusing on assets in close proximity to our existing Production Centres in Finland and Sweden. The funds received will be reinvested into further drilling at the Company's projects in southern Finland, and the development of the Kaapelinkulma Gold Project, which is fully permitted and located close to Dragon Mining's operating floatation plant at Vammala."
The Acquirer is a privately held Company pursuing opportunities within renewable energy and energy storage. As such, they have been attracted to the Project for its cobalt potential.