TSX-V-listed Altus Strategies has signed a Joint Venture Termination agreement and a Sale & Purchase agreement with ASX-listed Canyon Resources.
The Termination Agreement terminates the existing Joint Venture
Agreement dated 23 December 2013 that the company has with Canyon.
The SPA transfers a 100% interest in the share capital of the company’s subsidiary Aucam Resources, which is incorporated in the Republic of the Seychelles, to Canyon.
Aucam is the 100% owner of Aucam SA, the holder of the company’s Birsok and Mandoum licences in Cameroon.
The project is located in central Cameroon and is contiguous with exploration licences owned by Canyon, covering the potentially substantial Minim Martap bauxite deposit.
“We are delighted to reach this deal with Canyon which is designed to monetise our bauxite projects in Cameroon,” says Steven Poulton, CE of Altus, comments:
“The deal will generate a significant additional shareholding for the company in ASX listed Canyon which, if fully consummated, is valued at approximately £3.4 million / C$5.8 million based on the current price of Canyon’s shares on the ASX.
“Critically, we have also secured a US$1.50 / tonne ‘life of mine’ royalty on bauxite ore mined and sold from the Project. Altus strategically acquired a stake in the project in 2010 and entered a JV with Canyon in December 2013.
“Our total expenditure generating the project prior to the JV was less than US$125,000 and this amount was repaid in cash by Canyon.
“We also received an initial 8 million Canyon shares which are not subject to escrow, with a current value to Altus of approximately £0.8 million / C$1.5 million.
“This series of transactions showcases the strategic value of our Africa focused and counter-cyclical project generator business model,” highlights
- Altus to receive up to 30 million Canyon shares with a current value of C$5.8 million / £3.4 million as follows:
- 25 million shares for the termination of the JVA (which are in addition to 8 million shares already received under the JVA)
- 5 million shares for transferring the project and upon the receipt of a mining convention at the Minim Martap Project
- Altus to receive a US$1.50 /tonne royalty on bauxite ore mined and sold from the project
- Altus expended less than US$125,000 on generating the project prior to the JVA
- Canyon has announced a JORC (2012) compliant resource at the Minim Martap Project of 550 Mt at an average grade of 45.5% total Al2O3 and total 2.06% SiO2, comprising:
- Indicated 88 Mt averaging 41.8% Al2O3 and 1.3% SiO2
- Inferred 466 Mt averaging 46.2% Al2O3 and 2.2% SiO2
- The project occupies parts of the same bauxite plateaux as the Minim Martap project
- The project is located less than 10 km from a rail line which runs to the port