Investigator Resources (ASX:IVR) has finalised the sale of its joint venture (JV) interest and adjacent tenements in the Stuart Shelf, South Australia for $1 million cash and future royalties.
Gawler Resources, a subsidiary of Investigator, entered into a sale agreement with privately held Pernatty, a subsidiary of Discover Co, to sell its 49% interest in several tenements and its wholly owned Lake McFarlane tenements.
Managing Director Andrew Mcllwain says the sale provides additional cash for exploration planned on the silver and gold targets, and also removes a significant expenditure commitment on the Stuart Shelf tenements that are non-core to the company.
“Whilst Discover Co has recently reported exploration success on the Wartarka JV tenement, we expect their focus will be further west on their Pernatty tenements,” Mcllwain says.
“Continued exposure to exploration success on these tenements through Discover Co’s future programs is retained with a 1% royalty over the JV tenements and a 0.5% royalty over the Lake McFarlane tenements.”
On completion, a royalty deed will be entered into, in which Investigator will receive a 1% net smelter royalty (NSR) for all mineral production from the JV tenements, a 0.5% NSR for all mineral production from the Lake McFarlane tenements, and the refund of the proportion of the prepaid tenement rents for the period, following completion.
When Pernatty announces a decision to mine on any of the tenements, Pernatty has a once-off option to acquire the NSRs at a price that is agreed or determined by independent experts.
The transaction is expected to be completed during the December quarter of this year.
Investigator Resources is a metals explorer focused primarily on the Gawler Craton of South Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Investigator Resources
