Kidman Resources Ltd (ASX:KDR) has signed a binding Heads of Agreement to sell its Burbanks gold mine in Western Australia for $4.5 million. This deal was signed with the Resources & Energy Group Ltd (ASX:REZ).
The company places its Burbanks mine on care and maintenance in August, this year, following numerous expressions of interest to acquire the property.
Kidman Resources says it intends to focus its resources on its Mt Holland gold and Lithium Projects instead.
The Burbanks sale depends on a few conditions precedent being satisfied. They include completion of due diligence from Resources & Energy within 21 days, and the parties entering into a Formal Agreement, as well as obtaining any regulatory or shareholder approval.
Kidman Resources posted a net loss of $4.3 million at 30 June 2016.