Alma snaps up Tropex’s Briggs permits

Alma Metals (ASX:ALM) has executed a binding term sheet to acquire 2 exploration permits from privately held Tropex Metals, which are both adjacent to its Briggs Copper Project in Queensland. 

Upon transferring the exploration permits to Alma’s Australian subsidiary, Alma will issue $50,000 worth of ordinary shares in Alma to Tropex, based on a 10-day volume weighted average price (VWAP) calculated on the day binding transaction documents are executed. 

These shares will be escrowed for 6 months. 

Under the agreement, Tropex will be entitled to receive a 1% net smelter royalty (NSR) on any mineral production from the exploration permits, capped at $7.5 million.

The exploration permits will become part of the Briggs, Mannersley, and Fig Tree Hill joint venture (JV) with the cost of acquisition to form part of Alma’s earn-in expenditure. 

Alma currently has a 30% JV interest in the Briggs project and can earn up to 70% from owner Canterbury Resources (ASX:CBY) via a staged earn-in. 

Alma Metals is a copper-focused explorer, with assets located in Western Australia and Queensland. 

As of 30 September 2023, the company had $1.896 million cash and cash equivalents at hand, according to its latest quarterly report. 

Write to Aaliyah Rogan at Mining.com.au      

Images: Alma Metals
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.