Moho Resources has finalized the sale of its Empress Springs Project with revised payment terms, while progressing a promising soil sampling program at its Silver Swan gold project. The company remains focused on portfolio optimization and shareholder value.
- Binding sale agreement executed with Qld Aus Graphite for Empress Springs Project
- Upfront cash payment increased to $408,500, with $300,000 deferred and royalty cancelled
- Soil sampling underway at Silver Swan Project targeting gold anomalies linked to Poseidon Nickel findings
- Exploration expenditure for the quarter totaled $128,648 with no mining production activities
- Moho maintains a strong cash position of $1.017 million to fund ongoing operations
Strategic Divestment of Empress Springs
Moho Resources Limited (ASX: MOH) has taken a decisive step in reshaping its asset portfolio by signing a binding Sale and Purchase Agreement with Qld Aus Graphite Pty Ltd for the Empress Springs Project in Western Queensland. The transaction, initially valued at $1.258 million, has been amended to increase the upfront cash payment to $408,500, with a further $300,000 payable in 12 months, and notably, the 1% net smelter royalty originally included has been cancelled. This adjustment reflects both parties’ satisfaction with due diligence outcomes and streamlines the financial terms for Moho.
This divestment aligns with Moho’s strategic objective to realise value from existing assets and redeploy capital towards higher-potential opportunities, enhancing shareholder returns. The sale of Empress Springs marks a significant milestone in this ongoing portfolio optimization process.
Exploration Momentum at Silver Swan
Meanwhile, Moho has advanced its exploration efforts at the Silver Swan Project (E27/623) in Western Australia. The company commenced a comprehensive soil sampling program in late March, collecting 442 samples across the tenement. This initiative targets a gold anomaly zone identified by Poseidon Nickel (now Horizon Minerals) on the adjacent Black Swan Project, where a 3-kilometre-long gold anomaly was detected in August 2024.
Gold assay results are anticipated in May 2025, and Moho has indicated plans to follow up any significant anomalism with aircore drilling. The proximity of Silver Swan to established gold mining camps such as Kanowna Belle and Gordon-Sirdar underscores the project’s prospective potential within a geologically favourable terrane.
Weld Range North Project Remains on Hold
No significant exploration activities were reported during the quarter at the Weld Range North Project, located within the Youanmi Terrain of Western Australia. The project’s geological setting includes Archean mafic and ultramafic rocks, with geophysical anomalies suggesting potential large igneous province intrusions. Moho’s current focus remains on prioritizing projects with nearer-term value catalysts.
Financial Position and Corporate Governance
Moho’s exploration expenditure for the quarter was $128,648, reflecting disciplined capital deployment. The company reported no substantive mining production or development activities during the period. Payments to related parties, primarily director fees, were disclosed as $41,000.
Importantly, Moho maintains a robust cash balance of $1.017 million at quarter’s end, supported by prudent financing activities. This liquidity position provides a solid foundation for ongoing exploration and corporate initiatives.
The company also held a General Meeting in February 2025, where all resolutions were passed, reinforcing shareholder support for the board’s strategic direction. The board, chaired by Peter Christie, continues to oversee a focused approach to asset management and value creation.
Bottom Line?
Moho’s strategic asset sale and targeted exploration set the stage for potential value uplift pending assay results and further drilling decisions.
Questions in the middle?
- What will the assay results from Silver Swan’s soil sampling reveal about gold potential?
- How will the cancellation of the net smelter royalty affect Moho’s long-term cash flows?
- Are there plans for further divestments or acquisitions to accelerate portfolio optimization?