SRK Consulting Australia has issued the final valuation of the 2% net smelter royalty (NSR) held over Astute Metals’ (ASX:ASE) Georgina Iron-Oxide Copper-Gold (IOCG) Project in the Northern Territory.
The preferred valuation has come in at $70,000 plus any applicable goods and services tax.
As a result, Astute Metals, which has a market capitalisation of $15.9 million, has decided to acquire the royalty from Greenvale Energy (ASX:GRV) via the issue of 2.41 million shares at $0.029 per share, subject to shareholder approval.
Under the terms of the deed, approval must be obtained prior to the end of the fourth quarter of this year.
On 30 September 2024, the company exercised a call option deed to acquire the NSR on the project. Both companies appointed SRK Consulting to conduct the independent fair market valuation.
Chairman Tony Leibowitz says with Astute now finalising drilling plans for an upcoming program and the valuation complete, the company can continue advancing Georgina without the complexity of having outside stakeholders.
Leibowitz adds this gives the company “full flexibility to explore this exciting asset.”
This news comes after Greenvale Energy sold its investment in Astute for $1.53 million, which resulted in its cash position increasing to over $2.85 million.
At the time Greenvale retained the 2% NSR over the Georgina Project, which comprises 10 granted exploration licences over a 4,522km2 tenement package in the East Tennant Mineral Province of the Northern Territory.
Astute Metals is a junior mineral explorer focused on discovering and developing critical minerals projects in tier one jurisdictions globally.
Write to Aaliyah Rogan at Mining.com.au
Images: Astute Metals
