Merger and acquisition (M&A) activity is prominent today among ASX-listed mining companies, as Aeris Resources (ASX:AIS) has entered into a binding agreement with privately held Dingo Minerals to sell its North Queensland copper assets.
The company will receive environmental bonds worth $6.5 million, between $4 million to $5 million in cash on completion, and a deferred cash payment of $3 million within three months of Dingo achieving commercial production.
Treadstone Resource Partners acted as the company’s financial advisor, while HopgoodGanim Lawyers acted as the legal advisor.
Aeris, which has a market capitalisation of $563.4 million, says this transaction is on strategy that disposes of non-core assets and enhances its balance sheet.
Executive Chairman Andre Labuschagne says the company aims to simplify its portfolio to focus on core assets.
“The proceeds realised will be available for debt repayment or investment into growth projects,” Labuschagne says.
More divestments
First Au (ASX:FAU) entered into a heads of agreement with AustChina (ASX:AUH) to divest its subsidiaries which hold the Victorian Goldfield Project.
The project hosts a suite of tenements prospective for silver, copper, lead, and zinc, as well as rare earths and antimony, tungsten and molybdenum.
Under the deal, AustChina will pay $75,000 cash to First Au and issue $150,000 worth of shares to the company as an option fee.
If AustChina exercises the option to acquire First Au’s subsidiaries – Victorian Goldfields and Jacquian – the company will pay an additional $200,000 cash and issue $500,000 worth of shares to First Au, subject to shareholder approval.
Subject to completion, the project represents a strategic addition to AustChina’s project portfolio and will complement its existing mineral resources assets.
AustChina CEO Andrew Fogg says this represents an exploration opportunity in an established minerals exploration region with “positive” geological characteristics.
“Upon exercise of the option, we will seek to develop and commence our works program over the project,” Fogg says.
Offloading Palmerville
Native Mineral Resources (ASX:NMR) has executed a binding sale agreement with privately held Diversified Mining and Resources and Sympall for the Palmerville Project in north Queensland.
Palmerville comprises ten tenements along the Palmerville Fault, located near Chillagoe – which is an area known for copper, gold, and base metals.
As part of the deal, the company has received $50,001 for the sale of three tenements, as well as $50,000 as a non-refundable cash payment for a 45-day exclusivity period.
At the end of the exclusivity period, the purchasers will provide $500,000 for the remaining seven tenements.
Native Mineral, which has a market capitalisation of $100.3 million, says the sale is part of the company’s strategy to divest non-core assets. The company plans to focus on gold production and further exploring and developing opportunities at the Charters Towers assets.
CEO Blake Cannavo says with the recent proposed joint venture with Great Divide Mining (ASX:GDM), the company is looking to create a central gold processing hub at the Blackjack Project.
Write to Aaliyah Rogan at Mining.com.au
Images: Aeris Resources, First Au & Native Mineral Resources
