NGEx Resources has entered into an agreement with Bisha Mining Share Company to sell its Mogoraib Exploration License which covers the Hambok copper-zinc deposit.

Pursuant to the agreement, Bisha will pay $5m cash consideration on closing. A cash consideration of $7.5m more will be payable contingent upon the commencement of commercial production from the Mogoraib Exploration License.

The deal is subject to certain closing conditions, including the approval of the transaction by the Eritrea government. The transaction is expected to close in this year’s fourth quarter.

Bisha Mining Share Company, which is 60% owned by Nevsun Resources and 40% owned by Eritrean National Mining Company (Enamco), operates the Bisha gold-copper mine located nearly 16km from the Hambok deposit.