TIDMALS
RNS Number : 6716D
Altus Strategies PLC
11 October 2018
Altus Strategies Plc / Index: AIM / EPIC: ALS / Sector:
Mining
NOT FOR DISTRIBTUION TO US NEWSWIRE SERVICES NOR FOR
DISSEMINATION IN THE UNITED STATES OF AMERICA
11 October 2018
Altus Strategies Plc
("Altus" or the "Company")
Altus to Vend Bauxite JV to Canyon for Equity and Royalty
Altus Strategies Plc (AIM: ALS & TSX-V: ALTS), the Africa
focused exploration project generator, announces that it signed a
Letter of Intent ("LoI") with ASX listed Canyon Resources Ltd
("Canyon") on 10 October 2018, to terminate its existing bauxite
Joint Venture Agreement ("JVA") with Canyon and to transfer to
Canyon a 100% interest in the Company's Birsok and Mandoum licences
(the "Birsok project"). Under the terms of the LoI Altus will
receive up to 30M new shares in Canyon and a royalty of US$1.5/t on
ore mined and sold from the Birsok project. The Birsok project is
located in central Cameroon and is contiguous with exploration
licences covering the potentially substantial Minim Martap bauxite
deposit (the "Minim Martap project") which is owned by Canyon.
Highlights:
-- Altus to receive up to 30M Canyon shares and a US$1.5/t royalty on the Birsok project
-- Canyon trading at A$0.19 (approximately GBP0.10) per share
-- Altus currently holds 8M Canyon shares from existing joint venture
-- Canyon recently announced a JORC (2012) compliant resource at
Minim Martap of 550MT at an average grade of 45.5% total Al(2) O(3)
and total 2.06% SiO(2) , comprising:
o Indicated 88MT averaging 41.8% Al(2) O(3) and 1.3% SiO(2)
o Inferred 466MT averaging 46.2% Al(2) O(3) and 2.2% SiO(2)
-- Birsok shares a number of bauxite plateaux with Minim Martap
-- Birsok is located less than 10km from a rail line that runs to the port
-- JVA to be cancelled and Birsok project to be transferred to Canyon
Steven Poulton, Chief Executive of Altus, commented:
"Under this deal Altus will receive up to 30M Canyon shares plus
a US$1.5/t royalty on our Birsok bauxite project, in return for the
termination of the current joint venture agreement and transfer of
a 100% interest in Birsok to Canyon. When combined with our
existing holding of 8M shares, our combined holding of 38M Canyon
shares, would have a notional current market value of approximately
GBP3.9M / C$6.6M / A$7.2M.
"Bauxite is the primary ore of aluminium, a lightweight metal
which has substantial applications in the global drive for
increased energy-efficiency. The Minim Martap and Birsok projects
are potentially very substantial, having high grades, low
impurities and being strategically located adjacent to an operating
rail line that runs to the coast. We believe that significant
potential exists for Canyon to fast track the mining and export of
a premium grade bauxite product.
"Our agreement with Canyon further validates our project
generator business model, generating returns from exploration,
while growing a portfolio of potential high value royalty income
streams. We look forward to updating shareholders on this
transaction in due course."
Terms of LoI
Part A: In lieu of the termination of the JVA, Canyon will issue
to Altus:
- 15,000,000 ordinary free trading Canyon shares (the "Initial Shares")
- 10,000,000 ordinary escrowed Canyon shares, to be issued 12
months following the Initial Shares and subject to a 12 month
voluntary escrow
Part B: In lieu of the transfer of the Birsok project:
- 5,000,000 ordinary escrowed Canyon shares, to be issued upon
the execution of a mining convention on the Minim Martap project
and subject to a 12 month voluntary escrow
- a US$1.50 per tonne royalty on ore mined and sold from the Birsok project
The issue of shares by Canyon to Altus will be subject to final
documentation, the termination of the JVA, the transfer of the
Birsok project and any regulatory or other approvals as may be
required. Completion of the transaction is expected to occur by the
end of this year.
Qualified Person
The technical disclosure in this regulatory announcement has
been read and approved by Steven Poulton, Chief Executive of Altus.
A graduate of the University of Southampton in Geology (Hons), he
also holds a Master's degree from the Camborne School of Mines
(Exeter University) in Mining Geology. He is a Fellow of the
Institute of Materials, Minerals and Mining and has over 19 years
of experience in mineral exploration and is a Qualified Person
under the AIM rules and National Instrument 43-101 under the rules
of the TSX.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
For further information you are invited to visit the Company's
website www.altus-strategies.com or contact:
Altus Strategies Plc Tel: +44 (0) 1235 511 767
Steven Poulton, Chief Executive E: info@altus-strategies.com
SP Angel (Nominated Adviser) Tel: +44 (0) 20 3470 0470
Richard Morrison / Soltan Tagiev
SP Angel (Broker) Tel: +44 (0) 20 3470 0471
Richard Parlons / Jonathan Williams
Blytheweigh (Financial PR) Tel: +44 (0) 20 7138 3204
Tim Blythe / Camilla Horsfall /
James Husband
About Altus Strategies Plc
Altus is a London (AIM: ALS) and Toronto (TSX-V: ALTS) listed,
diversified and Africa focused mineral exploration project
generator. Through our subsidiaries we discover new projects and
attract third party capital to fund their growth, development and
ultimately exit optionality. This strategy enables Altus to remain
focused on the acquisition of new opportunities to be fed into the
project generation cycle and aims to minimise shareholder dilution.
Our business model is designed to create a growing portfolio of
well managed and high growth potential projects and royalties,
diversified by commodity and by country. Altus currently has
eighteen projects in six commodities across six countries. We aim
to position our shareholders at the vanguard of value creation, but
with significantly reduced risks traditionally associated with
investments in the mineral exploration sector.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this news release contain forward-looking
information. These statements address future events and conditions
and, as such, involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the statements.
Such factors include without limitation the completion of planned
expenditures, the ability to complete exploration programs on
schedule and the success of exploration programs. Readers are
cautioned not to place undue reliance on the forward-looking
information, which speak only as of the date of this news
release.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
JVELFFSVITLILIT
(END) Dow Jones Newswires
October 11, 2018 02:00 ET (06:00 GMT)
Altus Strategies (LSE:ALS)
Historical Stock Chart
From Apr 2024 to May 2024
Altus Strategies (LSE:ALS)
Historical Stock Chart
From May 2023 to May 2024