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
