Canadian mineral exploration company Pacific Wildcat Resources Corp. (PAW) has sold its Muiane Tantalum mine assets in Mozambique to Muscadine Ltd.
Muscadine will buy Tantalum's shares after a cash payment of US$3 million as well as the transfer and delivery to PAW of an aggregate of 8.8 million PAW shares that are currently owned by Muscadine.
Subject to certain regulatory conditions and approval, the sale of the tantalum assets, located in northern Mozambique, is scheduled to close no later than Nov. 15, 2012.
A Canadian mineral exploration company with a focus on developing rare earth projects, PAW said the sale proceeds will be used to finance ongoing activities at the Mrima Hill, a niobium and rare earth project in Kenya, where the Canadian mineral exploration company has a 70 per cent hold.
PAW said substantial rare earths mineralisation has been found on the property. It targets to complete in the next six months a rare earth resource reverse circulation drilling program over the project.
PAW has a market capitalisation of $22 million, based on 169.8 million shares outstanding. On Tuesday, its stock was up 30 per cent, trading at $0.13 a share. Its 52-week high and low were $0.75 and $0.05, respectively.