Perth-based junior, Sunstone Metals, is selling its Viscaria Copper Project to Copperstone Resources AB, a copper focused exploration company based in Sweden, for US$30.3 million.
The project will be run as partnership between the two companies and will be named the Viscaria Copper Project.
The two companies have just signed a non-biding letter of intent. Completion of the deal is subject to closing conditions such as Copperstone raising capital for the cash component of the transaction.
The deal will result in Sunstone Metals becoming the largest shareholder in Copperstone with an approximate 30% stake.
Copperstone Chairman Michael Mattsson says his company is well-suited to bring the project forward combined with existing Copperstone assets such as Granliden, Svartliden and Eva.
The Viscaria copper project is a former mine that produced 12.5Mt of ore at 2.3% copper. Sunstone says the project is close to a highway, rail line and is located approximately 1,200 km north of the Swedish capital Stockholm.