The JV owns rare earth element projects and a number of prospective uranium projects in the Northern Territory of Australia.

Under the purchase and sale agreement, Pancon will receive A$2.55m and a gross overriding royalty of 1% on sales of production from the property.

Pancon president and CEO Rick Mark said: "This transaction enables Pancon shareholders to capitalize on our exploration success at Charley Creek; it provides the company with a cash injection and the ability to benefit from all future production.

"This sale has been accomplished in a very difficult mining market and allows the Company to pursue other opportunities immediately."

Pancon shareholders will discuss on the transaction at a meeting in March.

Subject to certain closing conditions and regulatory approvals, the transaction is expected to be completed by June this year.

Essential Mining Resources is a subsidiary of EMMCO Mining, which is held by a consortium of South East Asian investors.