West Wits Mining (ASX:WWI) is set to divest the Mt. Cecelia project in Western Australia to Aventine Resources via the sale of 100% of the issued capital of its unit, Northern Reserves, according to a Wednesday Australian bourse filing.

The consideration consists of an equity portion of AU$2 million shares in Aventine, calculated at the public offering price under Aventine's proposed initial public offering, which is currently equal to 10 million Aventine shares, as well as a 1% net smelter returns royalty on all products extracted from the project.

It also includes deferred portion, upon the disclosure to ASX of a mineral resource estimate of inferred category or greater of at least 500,000 ounces of gold, at a minimum cut-off grade of 0.5 grams per tonne, of either AU$1 million in cash or 5 million Aventine shares, at Aventine's election.

The deal is subject to customary conditions, including due diligence, execution of definitive agreements, Aventine's proposed ASX listing and capital raising, and receipt of all necessary regulatory approvals.