Xstate Resources (ASX:XST) sold its 25% working interest in the Crest Jinn assets in Canada to Blue Sky Resources, according to a Feb. 7 filing with the Australian bourse.
Xstate Resources will receive a 3% overriding royalty on 25% of all output from the assets, including future ones. The value of the royalty interest was around AU$11,715 between Jan. 1, when the agreement took effect, and Feb. 7.
The company decided to divest the assets after commercial discussions with Blue Sky reached an impasse and amid an "increasingly uncertain political, economic, and environmental challenges" in Canada, per the filing.
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