Minotaur Exploration has entered into a binding conditional term sheet to sell its Scotia and Leinster nickel tenements to Auroch Minerals for 23,333,333 shares in the Perth-based company – valued at $1.4 million.

In addition, Auroch will make a $100,000 cash payment, deferred until its next round of capital-raising.

“Minotaur considers Auroch has the financial capacity, technical and operational expertise to further enhance the value of the Scotia and Leinster nickel assets through accelerated exploration and project development studies,” a spokesperson for the Adelaide company said.

“Minotaur is pleased to retain an exposure to the project’s forward prospects through its new Auroch shareholding but its primary focus is advancing high-grade copper-gold developments in SA and Queensland.”

Minotaur has base metals prospects within South Australia’s Gawler Craton geographic region.

Earlier this month, Minotaur and fellow publicly-listed Adelaide company OZ Minerals formed a strategic alliance to develop the Cloncurry region of northwest Queensland.

OzMinerals will fund Minotaur’s prospect research and project generation activity to $1 million over two years, as part of the deal.