Latitude 66 (ASX:LAT) has entered into a non-binding agreement with privately held Argonaut Partners and Neon Space to sell its 17.5% joint venture in the Greater Duchess Copper Gold Joint Venture in Queensland.
Both Argonaut and Neon Space will pay $2 million to Latitude 66.
A potential contingent payment is assessable on either $4 million cash or equivalent value in shares or, if the purchaser divests the acquired interest within 90 days to a third party who does not acquire the entire joint venture.
As part of the deal, Argonaut has provided a $750,000 loan to Latitude.
Latitude 66 provided formal written notice to its joint venture partner Carnaby Resources (ASX:CNB) offering the sale of its interest. Carnaby has 30 days to accept the offer.
Under the proposed terms, if Carnaby exercises its right of first refusal to accept the offer, the purchasers will be entitled to 7.5 million unlisted options in the company exercisable at $0.075 and an expiry date of 30 June 2028.
Managing Director Grant Coyle says this deal is in line with the company’s strategy to unlock value from its Australian assets.
“We are grateful for the support from Argonaut in this transaction, as well as their ongoing support, as we progress the company’s assets,” Coyle says.
“This transaction is well timed to provide Latitude 66 with near-term, non-dultive funding that will enable the company to continue advancing its Finnish and Western Australian projects.”
The Greater Duchess Project, located 70km southeast of Mount Isa, covers 1,921km2 and has multiple undeveloped copper-rich iron oxide copper gold (and epigenetic Tick Hill-style gold targets.
Carnaby Resources will be attending the Noosa Mining Investor Conference, held between 23-25 July, at the Peppers Noosa Resort. Mining.com.au is an official media partner of this year’s conference.
Write to Aaliyah Rogan at Mining.com.au
Images: Latitude 66
