Mergers and acquisitions (M&A) have been ramping up across the Australian Securities Exchange (ASX) over the past week ending August 15, with mining companies looking to purchase, divest, and join arms.
Asian Battery Metals (ASX:AZ9) shared its recent negotiations with Best Resources, entering a binding agreement to acquire the Maikhan Uul Project in southwestern Mongolia.
The company will pay a US$50,000 option fee to undergo a due diligence report within six months, along with another US$890,000 ($1.37 billion) to follow.
Managing Director Gan-Ochir Zunduisuren explains that the purchase of this tenement package is a natural extension to its copper-focused exploration strategy, as its flagship Oval discovery sits just 8km away.
“With shallow VMS-style mineralisation, a long-standing mining license, and close proximity to existing infrastructure, this project gives us exciting near-term optionality as we build a critical mass around our core asset in Mongolia,” Zunduisuren says.
This acquisition comes in time as the government grants Asian Battery Metals a 3,327 hectare tenement south of Yambat for a three-year period with extension up to 12 years.
Zunduisuren adds that this is an important step to increasing the company’s regional footprint, saying it’s a credit to the team and recent successes.
Time to divest
Albion Resources (ASX:ALB) is selling its Mongers Lake Project, located in the Murchison region of Western Australia, to Capricorn Metals (ASX:CMM), settling for a $1.4 million completion payment, following the already paid $100,000 cash deposit.
Capricorn will offload 149,784 shares in conjunction with the cash payment, priced based on the 20-day volume weighted average price (VWAP) of $9.35 per share.
After producing a JORC-compliant resource estimate of more than 75,000 ounces of gold and Capricorn’s decision to begin standalone operations at the project, Albion will receive an additional two $750,000 milestone payments.
CEO Peter Goh says Albion is well positioned financially following the sale of Mongers Lake Project, as the company shifts its focus on the Yandal West Gold Project, located on the Yandal Greenstone belt in Western Australia.
“Importantly, it allows us to accelerate drilling and target generation at Yandal West, where we’ve already had great success,” Goh says.
The project recently returned intercepts including 11m @ 20 grams per tonne gold from 17m at the Collavilla prospect.
Thor drops the hammer
Thor Energy (ASX:THR) is selling 75% of its US subsidiaries that hold uranium and vanadium claims across Colorado and Utah to Metals One (LSE:MET1), for interest in its subsidiary companies, Standard Minerals and Cisco Minerals.
Metals One has completed a £100,000 payment, ahead of issuing 14.22 million shares valued at £1 million to become the operator of the projects.
Thor will retain a 25% stake, which Metals One will have a 12-month exclusive option to acquire as it solely funds exploration activities.
Thor CEO Andrew Hume says the company is pleased to execute the sale and purchase agreement for these projects.
“I look forward to working with the management of Metals One PLC to help achieve our mutually beneficial exploration and development goals,” Hume says.
“We continue to remain focused on the remainder of our project portfolio and notably our HY-Range natural hydrogen and helium project in South Australia.”
Write to Maddison Elliott at Mining.com.au
Images: Albion & Thor Energy
