Buxton Resources (ASX:BUX) has announced that its wholly owned subsidiary, Buxton Resources Arizona has entered into a binding asset sale agreement IGO’s (ASX:IGO) wholly owned subsidiaries, IGO Newsearch and IGO US Project, for the sale of Buxton’s remaining joint venture interest in the Copper Wolf Project in Arizona, US.
Under the terms of the agreement, IGO will acquire Buxton’s 49% interest for a total cash consideration of $6.15 million, comprising $5.9 million and US$168,000.
Upon completion, the joint venture between the parties will be terminated.
The transaction allows Buxton to provide shareholder value while retaining exploration upside at its wholly owned tenements in Arizona.
Buxton will retain full interest in the 30.5km2 area surrounding the Transaction Mining Tenements, which covers the undrilled extension to the Copper Wolf system in the east at Wolverine and in the west at Sun Devil and Aztecs.
Buxton Managing Director Martin Moloney says that the sale is a “transformational deal” for the company.
“We are crystallising A$6.15 million from an asset acquired for pegging costs, while retaining 100% ownership of 30.5km2 of highly prospective ground in Arizona’s world-class porphyry copper belt,” Moloney says.
“Equally important is the termination of IGO’s Right of First Refusal contained in the Copper Wolf Joint Venture Agreement. This restores our strategic agility, allowing us to acquire, advance, or transact on our Arizona projects with total autonomy.
“With the Wolverine, Sun Devil, and Aztecs targets representing genuine discovery opportunities, we look forward to progressing these while leveraging our generative pipeline to acquire new projects, all backed by a materially stronger balance sheet.”
Buxton will now prepare and dispatch a Notice of Meeting to shareholders. Completion is expected within the next 15 business days on satisfaction of all conditions.
Buxton Resources is focused on discovery and development of nickel, copper, gold, iron, and graphite in Western Australia and Arizona.
Write to Amy Rotman at Mining.com.au
Images: Buxton Resources
