• Korab to sell Geolsec mineral lease ML27362 to Leka Fertiliser for $4.35M
• Korab to receive 15% net smelter royalty on all minerals except uranium and thorium
• Korab to use proceeds to retire debt, fund working capital, and exploration at Rum Jungle

Korab Resources Ltd (ASX: KOR) has executed a second heads of agreement (Second HoA) with Leka Fertiliser Pty Ltd to sell its Geolsec mineral lease ML27362 for a cash consideration of $4.35 million and a royalty of 15% of Net Smelter Returns on all minerals other than uranium and thorium, and a 1.5% royalty on uranium and thorium. The Second HoA replaces a previous agreement with Leka Shipping Limited, which was dissolved prior to the completion of the transaction. The mineral lease is located approximately 60 km south of the Port of Darwin in the Northern Territory and is considered a non-core asset for Korab. The transaction is subject to Korab shareholder approval if required by the ASX, as well as other customary conditions such as no material adverse change to the asset and the mineral lease remaining in good standing. Korab intends to use the proceeds from the sale to retire debt, for working capital purposes, and for exploration and development work on its Rum Jungle project. There are no changes to Korab's board or senior management as a result of this transaction.