Managing director John Peters said the board had decided that the tenements identified as gold targets were not in line with the company's strategy of pursuing battery-related metals and it would sell them to focus on nickel, cobalt and rare earth element exploration.
The market looked upon the move favourably, with Strategic shares rising 4.53% Monday to 1.38p (US1.8c).
Great Southern will pay A$100,000 in cash and issue 1 million shares of A4.5c each to Strategic subsidiary Central Australian Rare Earths.
It will also pay A$50,000 as a non-refundable deposit on exchange of contracts, with the balance and shares to be exchanged on transfer of title.
Peters said Strategic was planning to undertake further drilling around Hanns Camp, particularly at Hanns Camp South, which was showing good signs of nickel sulphide.
Strategic also holds 50% of Cornwall Resources and operates the Leigh Creek copper mine in Australia and the Cobre magnetite stockpile in new Mexico, US.