Asara Resources (ASX:AS1) struck a deal to divest its interest in the Paguanta copper and silver-lead-zinc project in Chile to Ajax Resources for $1.4 million, according to a Wednesday filing with the Australian bourse.
The price consists of $50,000 in cash and $350,000 in Ajax ordinary shares, payable at completion, as well as deferred consideration of two cash payments of $500,000 each, subject to the achievement of certain milestones.
Asara will sell its roughly 74.8% interest in Compania Minera Paguanta, which owns the permits for the Paguanta project, to Ajax.
The project has been on care and maintenance since 2018 and is considered a non-core asset, Asara said, adding that the sale is consistent with the company's strategy of advancing its flagship Kada gold project in Guinea.