Infinity Mining Unlocks Value by Selling Leonora Stake, Gains EG1 Shares

Strategic Divestment to Refocus Portfolio

Infinity Mining Limited (ASX:IMI) has taken a decisive step to streamline its asset base by executing a binding Share Sale Agreement (SSA) to transfer its interest in the Leonora Goldfields Project in Western Australia. The tenements will first be acquired by U Resource Pty Ltd as part of a tenure merger before being transferred to Evergreen Lithium Limited (ASX:EG1). This move is a clear signal of Infinity’s intent to unlock value from non-core assets while maintaining upside exposure through equity participation.

Managing Director Joe Phillips emphasised that the transaction provides a “clear outcome” for Infinity, allowing the company to partner with EG1, a group well-positioned to advance the Leonora project. Infinity will retain a substantial shareholding in EG1, ensuring it benefits from any future progress without the operational burden.

Consideration Package and Shareholder Value

The consideration package for the transaction is structured to balance immediate value with future upside. Infinity will receive a cash deposit of $35,714, alongside 8.9 million EG1 shares valued at approximately $446,000 at a deemed price of $0.05 per share. Additionally, deferred shares worth $267,857 are to be issued subject to shareholder approval, with pricing linked to a 14-day VWAP and a price floor and cap to manage volatility.

Further aligning incentives, a milestone payment of $89,286 in EG1 shares is contingent on EG1 announcing a JORC-compliant inferred resource exceeding 100,000 ounces within three years. Both upfront and deferred shares will be escrowed for 12 months, underscoring a commitment to long-term value creation.

Refocusing on Core Assets and Growth Potential

With the Leonora Goldfields Project transitioning to EG1’s stewardship, Infinity Mining will concentrate its resources on advancing its core gold and copper projects, notably the Cangai Copper Project. This historic high-grade copper mine, with a JORC-compliant resource, offers near-term development potential and aligns with Infinity’s strategy to prioritise assets with clearer pathways to production and shareholder returns.

Infinity’s diversified portfolio, spanning over 3,700 km² across NSW, Victoria, and Western Australia, positions it well to capitalise on base metals and gold exploration opportunities. The divestment allows the company to enhance its financial flexibility and operational focus.

Experienced Leadership at EG1

Evergreen Lithium Limited brings a seasoned leadership team to the Leonora project, chaired by Simon Lill, who was instrumental in the $5 billion acquisition of De Grey Mining by Northern Star. The recent appointment of Steven Morris, with extensive gold mining expertise and current chairmanship of Auric Mining, adds further depth. This leadership pedigree bodes well for the advancement of the Leonora Goldfields Project under EG1’s ownership.

For Infinity shareholders, the transaction offers a blend of immediate value realisation and potential long-term growth through their equity stake in EG1, while Infinity sharpens its focus on projects with near-term development prospects.