The acquisition amount is payable in two tranches, of which first tranche of A$1m ($1.03m) has to be paid immediately, while, remaining A$14m ($14.49 m) is to be paid on the completion of the agreement.

The transaction is expected to be finalized by the end of June 2013, according to the company.

Following the divestment in the Andash project, Kentor will now focus on the exploration and development of its potential Jervois copper-silver-gold project located in the Northern Territory. It is reportedly subject to a feasibility study.

Kentor managing director Simon Milroy told Proactive Investors that the company would now focus on its Australia-based assets that include the Jervois copper-silver-gold project in the Northern Territory.

"Jervois is on granted mine licenses with no local communities, and therefore there is the potential for an easy path to progress towards development," added Milroy.