(MENAFN - ProactiveInvestors - Australia) Wavenet International (ASX: WAL) has inked a heads of agreement to sell 60% of its total interest in Preston Vale Vineyard to LSG Resources for A4.65 million.
The company will retain a 20% interest in the vineyard.
The sale is subject to the approval by the Foreign Investment Review Board and provides for the payment of the total purchase price in staged payments between November 2012 and June 2014.
LSG Resources is part of China's Haoning Group which specialises in the import and export of iron ore, steel and metallurgical products.
The Haoning Group is also active in the fields of mining, shipping, real estate, ceramics and tourism.
Meanwhile, Wavenet is focused on exploration at its Selaup Gold Project in Indonesia.
Geochemical results indicate that there are several gold, silver, copper and lead-zinc anomalies on the concession.
To test some of the identified soil anomalies a preliminary diamond drilling campaign of about 2,050 metres across 18 holes is being conducted.
These holes are designed to test along strike from existing artisanal workings where several mineralised structures are producing gold.
A diamond drill rig is currently at Selaup and has completed the first accessible hole of the drilling program.
The hole finished at a depth of 106.04 metres and intersected several alteration zones, sulphide-bearing horizons and hydrothermal breccias.
A second drill rig is onsite and is due to start drilling as soon as another access track is completed.