In this week’s M&A Monday, the markets saw a range of transactions to round off last week. This includes proposals for and the completion of acquisitions, as well as terminations of agreements.
TNR Gold (TSX-V:TNR) received a non-binding proposal from Altius Minerals (TSX:ALS) to acquire the former in whole, through the acquisition of all common shares.
Altius is a significant shareholder of TNR Gold, holding a 12.7% stake currently through issued and outstanding shares.
In relation to this proposal, TNR Gold has entered an exclusivity agreement with Altius after the special committee of independent directors conducted a review.
The special committee will continue to evaluate the proposal to take the best course of action for the company.
No decision has been made at this time.
Divesting nickel holdings
Last week, Estrella Resources (ASX:ESR) entered a formal binding agreement with Mandilla Nickel to divest 100% of its Spargoville nickel rights in Western Australia.
Mandilla Nickel is a wholly owned subsidiary of Astral Resources (ASX:AAR). In regard to this transaction, Estrella will receive 20 million Astral shares at an issue price of $0.15 each for a total consideration of $3 million.
After the completion of this transaction, Mandilla Nickel will obtain 100% of Estrella’s nickel rights and interests at the West Kambalda tenements and the Spargos tenements, which are currently held by Estrella’s wholly owned subsidiary WA Nickel.
Estrella Managing Director Robert Mencel says the company is ‘pleased’ to reach a binding agreement with Astral, “which allows Estrella to increase its focus on its flagship tenements in Timor-Leste, while still retaining investment upside from the company’s existing suite of assets.”
Astral Managing Director Marc Ducler says the company is continuing to take the “necessary steps” to eliminate third party obstacles regarding the development of the Mandilla Gold Project.
“The transaction with Estrella is further testament to the ongoing commitment of the Astral team to improve Astral’s permitting, approvals pathways, and ultimately, project financing,” Ducler says.
Deal closed
Meanwhile, Althea Copper (CSE:ALTH) has completed the acquisition of the Mink Narrows Copper-Zinc Project in Manitoba.
The company issued 1.25 million shares to Evolve Royalties (CSE:EVR) at C$0.12 per share, representing a consideration of C$150,000.
Althea also granted Evolve a 2% net smelter royalty return from material produced at the asset on the exercise of the option. Althea is eligible to purchase half of the royalty for C$1 million.
Althea CEO Lowell Kamin says the company is ‘very pleased’ to have progressed from a listing on the Canadian Securities Exchange in August to having now secured 100% ownership over Mink Narrows, which is an “important milestone” for the company.
“We now own outright a historically drilled copper-zinc system in one of Canada’s most productive base metal districts,” Kamin says.
“Our technical team is focused on turning decades of historical work and our 2024 geophysics into a modern, testable geological model and a disciplined exploration program.
“As a publicly traded company, our focus is advancing Mink Narrows while remaining open to opportunities that can create additional value for our shareholders.”
Agreement falls apart
Finally, Wedgemount Resources (CSE:WDGY) has terminated its option agreement to acquire certain leases and claims in Arizona.
The agreement with Myriad Uranium (CSE:M) would have provided Wedgemount Resources with interest in 23 breccia pipe-hosted uranium targets.
The option agreement was initially announced to the market in June this year.
Wedgemount CEO Mark Vanry says the company made a “strategic decision” to focus on its Texas oil and gas assets due to the growth and value potential of the leases.
“Further, it’s our belief that conventional onshore oil levered Texas assets will continue to be a target of international investors in the coming years,” Vanry says.
Wedgemount Resources is an emerging natural resource company focused on the acquisition and advancement of energy and critical minerals projects in the US.
Write to Maddison Elliott at Mining.com.au
Main Image: TNR Gold
