IGO LTD (ASX: IGO) saw its stock price plummet by 7.51% in Monday's trading session, following news that the company has agreed to sell its remaining 70% interest in the Thunderstorm Gold Project to Rumble Resources (ASX: RTR). The sharp decline reflects investor concerns about the potential impact of this asset divestment on IGO's future prospects.
According to the announcement, Rumble Resources will acquire IGO's stake in three Fraser Range tenements for $300,000 in Rumble shares, based on a five-day volume-weighted average price. The deal also includes a 1.05% net smelter return royalty over the tenements for IGO. This transaction marks Rumble Resources' full acquisition of the Thunderstorm Gold Project, which covers 348km2 across six exploration licenses and hosts promising gold discoveries at the Gazelle and Pion prospects.
The market's negative reaction to this news suggests that investors may be concerned about IGO's strategy and its potential loss of exposure to the gold sector. While the sale provides IGO with some immediate value and ongoing royalty potential, it also removes the company from direct involvement in what could be a significant gold project. As IGO refocuses its portfolio, investors will likely be watching closely for the company's next moves and how it plans to deploy the proceeds from this sale to drive future growth and shareholder value.
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