Albright Metals (ASX:ABR) has sold its mineral rights for the Australian Vanadium Project at Gabanintha in Western Australia to Australian Vanadium (ASX:AVL), terminating a 2017 sale agreement.
The 2017 mineral rights sale agreement provided Albright with the rights to explore for secondary minerals at the project except for vanadium, uranium, cobalt, chromium, titanium, lithium, tantalum, manganese, and iron ore. Under the new agreement, all rights and interests rest with Australian Vanadium.
Under the terms of the transaction, Albright Metals will receive a total consideration of $1.75 million, comprising $500,000 in cash and $1.25 million in shares of Australian Vanadium. The shares will be issued at a price based on the 20-day volume-weighted average price of Australian Vanadium shares traded on the ASX.
Albright will receive Australian Vanadium’s 0.75% net smelter return royalty for Star Minerals’ (ASX:SMS) Tumblegum South Gold Project as part of this sale.
With the termination of the agreement, Albright’s rights and interests have reverted to Australian Vanadium, including the associated royalty arrangement for the project.
Albright CEO Greg Hill says that the sale provides benefits for both companies, with Albright being able to monetise a non-core asset, while Australian Vanadium gains greater flexibility over the project’s future development.
Proceeds will be used to progress Albright Metals’ Gold Pike Gold and Antimony Project in New Brunswick, Canada.
Albright Metals is a mineral explorer focused on antimony, gold, copper, lithium, and manganese in both Canada and Australia.
Write to Amy Rotman at Mining.com.au
Main image: Albright Metals
