In exchange for the sale of a 100% interest in the mining rights comprising the 600 hectares of Centenario, Rodinia will receive US$440,000 payable in 22 monthly installments of US$20,000.
The sale agreement helps strengthen the Company’s balance sheet and does not impact Rodinia’s flagship Salar de Diablillos property.
William Randall, President & CEO, commented, "The sale of the Añatuya & El Quevar claims that formed part of the Centenario group of claims helps strengthen the Company’s financial position, as we expect these monthly payments to cover the entirety of our fixed costs in Argentina, including on-site processing work and maintenance, overhead, and other associated local office costs associated with our flagship property."
The first payment under the sale agreement has been received, and future payments are expected to be received by the Company on the first week of each month over the next 21 months. The sale of the Añatuya and El Quevar claims reduces Rodinia’s Centenario property interest to approximately 500 hectares.
The Company has previously completed preliminary exploration on the Centenario claims and determined that in light of the quality and size of its Diablillos resource, continued advancement of Diablillos would create greater shareholder value than work at Centenario.
As a result, future work at Centenario was not anticipated in the foreseeable future and the Company determined that its sale would best support the Company’s current needs.
