Catalina Resources Executes Strategic Asset Sale Agreement for Kookynie West Project

Key Highlights:

• Catalina Resources (ASX: CTN) enters Asset Sale Agreement with KoBold Tjantjuru Pty Ltd.
• KoBold to acquire Kookynie West Project, comprising the Golden Chimney exploration tenement.
• Non-refundable cash deposits totaling AUD $405,000 over three years.
• Catalina retains a 1% net smelter return royalty, with a partial buyback option.
• Sale aligns with Catalina’s strategy to focus on high-priority projects.

Catalina Resources Executes Strategic Sale of Kookynie West Project

Catalina Resources Ltd (ASX: CTN), an Australian diversified mineral exploration and mine development company, has announced a significant milestone in its ongoing portfolio management. The company has executed an Asset Sale Agreement (ASA) with KoBold Tjantjuru Pty Ltd ("KoBold"), a subsidiary of the US-based KoBold Metals Company, for the divestment of its Kookynie West Project, which includes the Golden Chimney exploration tenement (E40/378). This transaction is part of Catalina’s strategic initiative to prioritize and focus on its most promising projects.

Strategic Asset Sale to Unlock Value

Under the terms of the agreement, KoBold will conduct due diligence to finalize the transaction, with non-refundable cash deposits of up to AUD $405,000 over the next three years. The first payment of AUD $40,000 is due within 10 business days following the execution of the ASA, with subsequent payments structured annually. Upon completion of the exploration rights transfer, KoBold will make the final payment, less any previously paid deposits.

The transaction includes an additional 1% net smelter return royalty granted to Catalina. Notably, KoBold retains the option to buy back half of the royalty for AUD $1,000,000, providing Catalina with potential long-term upside from any future production.

Focused Approach to Portfolio Management

This divestment aligns with Catalina’s strategy of continuous evaluation and prioritization of its project portfolio, enabling the company to allocate its resources toward higher-priority projects. The sale is expected to streamline Catalina’s focus, allowing it to concentrate on projects with the highest potential for near-term development.

About KoBold Metals

KoBold Metals is renowned for leveraging cutting-edge technology, including artificial intelligence and machine learning, to enhance mineral exploration. The company’s focus on critical minerals essential for the global energy transition makes them an ideal partner to further develop the Kookynie West Project.

Catalina’s agreement with KoBold marks a pivotal step in the company’s long-term growth strategy, enabling it to concentrate on its core projects while retaining a stake in the potential future success of the Kookynie West Project. This strategic move is expected to bolster Catalina's position in the highly competitive mining exploration sector while delivering value to its shareholders.

As of 4th November 2024, Catalina Resources (ASX: CTN) shares are trading at A $0.004.