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Sale of Lake Johnston Project



Key Points

  • Total consideration of up to $1.2 million

  • Initial cash consideration of $150,000 upon completion of sale, plus considerable upside through additional Performance Milestones.

  • Disposal of non-core assets allows Okapi to strengthen its focus on developing and growing its North American Uranium assets

Okapi Resources Limited (ASX: OKR, OTCQB: OKPRF) (Okapi or the Company) has entered into a binding agreement (Sale Agreement) to dispose its interest in the Lake Johnston Project to Nordau Pty Ltd, a privately held company. The assets are expected to be listed on the ASX in the next 12 months.


The Lake Johnston Project consists of E63/2039 and the joint venture with Charger Metals NL (ACN 646 203 465) (Charger Metals) in relation to E63/1903 (JV Agreement).


The total consideration under the Sale Agreement is up to $1.2 million which includes a non-refundable cash payment of $20,000 on signing the Sale Agreement and a further $130,000 cash upon completion of the sale. The remaining consideration consists of performance shares which are dependent on certain milestones being achieved which have been outlined on page 3.


Okapi’s Managing Director, Mr Andrew Ferrier said:


“Okapi is continuing to simplify and restructure the business with the sale of one of its non-core assets, the Lake Johnson Project. The transaction crystallises value for our shareholders today, while also preserving upside exposure from exploration success at the properties. The divestment also allows the Company to continue to focus on advancing and developing its high-quality uranium projects in North America.”