Korab Resources (ASX:KOR) said its unit Lugansk Gold completed the sale of its Ukrainian subsidiary Donetsky Kryazh (DKL) and the Bobrikovo gold and silver project in Ukraine to Limited Liability Company "IRTIS", according to a Wednesday filing with the Australian bourse.

The deal includes a cash payment of AU$51,000 and a royalty of $100 per ounce of gold and $1 per ounce of silver produced from the project, the filing said.

Additionally, Korab is entitled to a 30% share of any profit if IRTIS sells the assets for more than the original consideration or if compensation is received for any loss related to the project, the filing added.

Proceeds from the sale are to be used for debt reduction, working capital, and exploration of Korab's Rum Jungle project in Darwin, the company said.