Nyota Minerals has confirmed a plan to sell 75 percent of its Tulu Kapi gold mine project in Ethiopia, Proactive Investors UK reported.

In return Nyota Minerals will receive £1 million of cash and £3.5 million in shares, and it will retain a 25 percent interest in the project.

The identity of the buyer, described by Nyota as a “junior exploration and development company listed on a regulated stock market”, is not yet identified, Proactive Investors reported.

The new partner is expected to manage the work programmes at Tulu Kapi, according to Proactive Investors.

The proposed work programme was submitted to the Ethiopian authorities last week, and the completion of the deal is conditional upon the government’s approval.

Tulu Kapi have 1.8 million ounces of gold resources reserve, Proactive Investors reported citing the definitive feasibility study of project’s technical and economic viability last December.

Source: Proactive Investors UK