• Binding agreement signed to sell Karonie and Lake Rebecca Projects to Forrestania Resources
• Consideration of $5m to be satisfied by issue of FRS shares
• Alchemy to retain 1% Net Smelter Royalty on minerals mined, excluding first 110koz from Parmelia, KZ5 and Taupo deposits

Alchemy Resources Limited (ASX: ALY) has signed a binding agreement to sell its Karonie and Lake Rebecca Projects to Forrestania Resources Limited (ASX: FRS) for a consideration of $5 million. The consideration will be satisfied by the issue of FRS shares at an issue price equal to the 10-day VWAP of its shares as at the date of the agreement. In addition, Alchemy will be awarded a 1% Net Smelter Royalty on all minerals mined from the tenements, excluding the first 110,000 ounces of gold mined from the Parmelia, KZ5 and Taupo deposits. The transaction is subject to various conditions, including due diligence, shareholder and regulatory approvals. The sale of the Karonie and Lake Rebecca Projects allows Alchemy to focus on its other assets, such as the Yellow Mountain and Overflow Copper-Gold projects in New South Wales, as well as its lithium joint venture with JOGMEC and the high-grade iron ore project at Valley Bore. The company believes these assets offer significant growth potential and will be a key focus for the company going forward.

The sale of the Karonie and Lake Rebecca Projects strengthens Alchemy's financial position and enables the company to redirect capital and management focus towards a number of highly prospective projects that it believes offer substantial growth potential, including the Yellow Mountain project in New South Wales and the high-grade iron ore project at Valley Bore.