February 6, 2014

Highlights

$2 million conditional cash sale of Comet Vale Project.

Consistent with Reed's strategy of focusing on its Advanced Minerals projects and realising value for its suite of non-core assets.

Extract:

Reed Resources Ltd (ASX: RDR) (Reed or Company) is pleased to announce that it has accepted a binding cash offer (Offer) for the conditional sale of its subsidiary Sand Queen Gold Mines Pty Ltd (SQGM) to a private company. SQGM holds Reed's Comet Vale Gold Project, located near Kalgoorlie.

Under the transaction, Reed will receive a non-refundable deposit of $100,000 and $1 million on completion of the transfer of the shares in SQGM, plus up to a further $900,000 in instalments. Completion of the sale, and receipt of the $1 million payment, is expected to occur in the March Quarter of 2014, subject to limited due diligence conditions and to receiving certain third party consents.

The further instalments are expected to be received in June and September, subject to the transfer of the Comet Vale tenements in good standing, the transfer of related licences and assets and completion of certain ancillary arrangements.

Commenting on the sale, Reed Managing Director, Chris Reed, said: With the Company fully focused on advancing its Advanced Minerals projects, it is the appropriate time to sell Comet Vale. This is consistent with the Company's strategy of realising value for its suite of attractive non-core assets.

This is an extract. Download the full announcement.

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