Buru Energy (ASX:BRU) subsidiary, Battmin, divested its 50% interest in the Barbwire Terrace base metal project in Western Australia to Sipa Resources (ASX:SRI), according to a Friday filing with the Australian bourse.

Sipa agreed to grant Battmin a royalty of 0.6% of the net smelter return from the tenements' future production. Sipa has the right to buy back the royalty for AU$600,000.

The transfer of the tenements is subject to customary regulatory approvals, per the filing.

Buru Energy's shares tumbled 10% in recent Friday trade.