Moho Secures $708,500 in Revised Empress Springs Sale Agreement
Moho Resources has amended the sale terms of its Empress Springs Project with Qld Aus Graphite, replacing a royalty agreement with upfront cash payments totaling $708,500. Completion is expected soon, pending final conditions.
- Sale terms revised to two cash payments totaling $708,500
- Royalty Deed between Moho and QAG cancelled
- Completion expected imminently after conditions precedent met
- Transaction aligns with Moho’s strategy to divest non-core assets
- Release of mutual claims related to the cancelled Royalty Deed
Background to the Sale
Moho Resources Limited (ASX: MOH) has announced a significant variation to the sale of its Empress Springs Project, initially disclosed in February 2025. The project, located in Western Australia, has been under negotiation with Qld Aus Graphite Pty Ltd (QAG), a company focused on graphite mining and development.
The original agreement included a Royalty Deed, which would have granted Moho ongoing royalty payments from QAG’s future production. However, the recent Side Letter Deed of Variation cancels this royalty arrangement entirely, signaling a shift in how Moho is realising value from this asset.
Revised Financial Terms
Under the amended terms, Moho will receive two cash payments from QAG: an initial payment of $408,500 (excluding GST) upon completion of the sale, and a second payment of $300,000 (excluding GST) exactly 12 months later. This structure replaces the previously agreed royalty stream, providing Moho with immediate and near-term liquidity rather than contingent future income.
The total consideration of $708,500 reflects a pragmatic approach by Moho to secure cash upfront, potentially reducing exposure to commodity price volatility and operational risks associated with the project’s future development.
Conditions and Completion Outlook
Completion of the sale is expected imminently, contingent on the satisfaction or waiver of several conditions precedent. These include Moho obtaining all necessary consents and approvals under the joint venture agreement, releasing its caveat over relevant exploration permits, and securing indicative approval for the transfer of permits to QAG on acceptable terms.
Both parties have agreed to release each other from all claims related to the cancelled Royalty Deed, effectively closing that chapter and simplifying the transaction’s legal framework.
Strategic Implications for Moho
Moho’s Chairman, Peter Christie, emphasised the company’s commitment to completing the transaction as part of a broader strategy to realise value from non-core assets. This move allows Moho to focus resources and capital on new project opportunities that may offer greater growth potential for shareholders.
By converting a royalty interest into immediate cash payments, Moho mitigates future uncertainties and strengthens its balance sheet, positioning itself for more agile exploration and development activities.
Looking Ahead
As the sale of Empress Springs approaches completion, market participants will be watching closely to see how Moho deploys the proceeds and what new ventures it pursues. The cancellation of the royalty agreement removes a potential long-term revenue stream but provides clarity and certainty in the near term.
Bottom Line?
Moho’s revised deal trades future royalties for upfront cash, setting the stage for strategic reinvestment.
Questions in the middle?
- What new projects will Moho prioritize with the freed-up capital?
- Could the cancellation of royalties impact Moho’s long-term revenue profile?
- How soon will the remaining conditions precedent be satisfied to finalise the sale?
