Astute Metals (ASX:ASE) has exercised a call option deed to acquire a 2% net smelter return royalty on the Georgina Basin Iron Oxide Copper-Gold Project in the Northern Territory from Greenvale Energy (ASX:GRV).
Under the deed, Astute will pay Greenvale based on an independent Fair Market Valuation, subject to Astute shareholder’s approval.
Both companies have appointed SRK Consulting Australasia to conduct the valuation, which is expected to take about four weeks.
Astute Metals, which has a market capitalisation of $15.37 million, will pay for the royalty in cash or fully paid shares, estimated to be $0.029 per share, at the election of the company.
If a payment is to be made via shares, the amount of shares is to be determined by Astute’s volume weighted average price of the precedent seven days prior to the exercise of the call option.
Chairman Tony Leibowitz says Astute moved to own 100% of it earlier this year with the intention of simplifying the ownership structure of the project.
“The acquisition of the royalty is a natural extension of the simplification process, providing the company with maximum optionality to unlock the value of this significant asset moving forward,” Leibowitz says.
On 16 July 2024, Greenvale Energy sold its investment in Astute for $1.53 million — resulting in its cash position increasing to more than $2.85 million.
As a result, Greenvale retained the 2% net smelter royalty over the project. Under the sale, Greenvale is entitled to a further milestone payment of 5 million fully paid ordinary Astute shares, subject to achieving previously announced milestones.
The Georgina Project comprises ten granted exploration licences, covering 4,522km2 in the highly prospective East Tennant Mineral Province of the Northern Territory.
Astute Metals is a mineral explorer focused on the discovery and development of a new generation of critical minerals projects in tier one jurisdictions globally.
Write to Aaliyah Rogan at Mining.com.au
Images: Astute Metals
