Merger and acquisition (M&A) deals have been a key talking point for the mining sector this week, with the Australian Securities Exchange (ASX) seeing a number of project sales.
Evion Group (ASX:EVG) has executed a binding share sale agreement with Globex Nevada that gives it an exclusive option to acquire the CARP Fluorspar Project in Lincoln County, Nevada.
The company will have the right to acquire 100% of the rights, title, and interest in 14 contiguous unpatented lode claims, covering more than 117.06 hectares within the Viola Mining District.
Evion will pay an initial consideration of US$150,000 cash and the equivalent of US$250,000 in shares, along with deferred payments totalling US$1.46 million in cash and US$1.75 million in shares, progressively payable over three years.
The company will also spend US$3.75 million ($5.23 million) on exploration at CARP over the next four years, while Globex will retain a 3% royalty of revenue derived from the project.
Evion will raise $6.5 million in a share placement to support acquisition costs, issuing 217.83 million shares at $0.03 each.
The CARP Fluorspar Project has historically produced 44,900 tonnes at an average grade of 69% calcium fluoride.
Stelar sale
Stelar Metals (ASX:SLB) has signed an earn-in agreement with privately held F&H Brothers Metals to acquire the Hill of Leaders Tungsten Project in the Northern Territory.
The company will pay $80,000 cash and issue 3 million shares within five days of signing a binding sale agreement with the vendor.
Stelar has committed to conduct a minimum of 1,000m of drilling or to provide $500,000 in project expenditure within the first 12 months of the agreement.
The company will issue 3 million shares to F&H Brothers if drilling intersects greater than 5m @ 0.25% tungsten trioxide within one year.
Stelar has the option to acquire the project within one year by issuing 3 million shares or paying $450,000 in cash, with the payment format to be decided at Stelar’s election.
The company will also pay $500,000 in cash or shares upon the announcement of a JORC-compliant resource estimate greater than 10,000 tonnes of contained tungsten.
F&H Brothers will retain a 1% net smelter royalty on the Hill of Leaders Project.
All Stelar shares issued under this agreement will be held under escrow for six months.
Stelar intends to conduct a phased reverse circulation drilling at the Hill of Leaders Tungsten Project, based on historical intersections of 1m @ 0.60% tungsten trioxide, 5m @ 0.19% tungsten trioxide, and 5m @ 0.17% tungsten trioxide.
Rumbling into new land
Rumble Resources (ASX:RTR) and AIC Mines (ASX:A1M) have entered into a tenement sale agreement with Aventine Resources to divest the Lamil joint venture for a $500,000 total cash consideration, including $600,000 in shares and a 1% net smelter return royalty.
Rumble will receive $250,000 in cash and Aventine shares valued at $300,000, along with a 0.5% net smelter return royalty for the sale.
Rumble CEO Peter Harold says Rumble’s priorities are to bring the Western Queen Project into production, optimise the Earaheedy flowsheet, and advance the Munarra Gully and Thunderstorm projects.
“Consequently, we have decided to divest some of our non-core exploration projects, and the Lamil joint venture is the first of those divestments,” Harold says.
“The deal we have announced with Aventine is a win-win for our shareholders and the Aventine shareholders, and we wish Aventine every success with their future exploration endeavours at Lamil.”
Aventine Managing Director Benjamin Dunn says the opportunity to acquire Lamil represents “an excellent strategic fit” within the company’s growing Paterson Province portfolio.
“Lamil complements our existing landholding and reinforces our strategy of assembling high-quality exploration ground, in proximity to some of Australia’s most significant gold and copper discoveries,” Dunn says.
“We believe the Paterson remains one of the most prospective underexplored mineral provinces globally, and we look forward to our technical team, led by Allan Kneeshaw and Rod King, working to unlock another Nifty-style copper or Havieron-style gold discovery.”
Dunn also notes the constructive and collaborative approach taken by the Rumble and AIC teams throughout the transaction process, adding that Aventine “looks forward to progressing exploration at Lamil following completion”.
Rumble Resources is a mineral explorer focused on its emerging zinc-lead-silver sulphide deposit in Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Evion Group, Stelar Metals & Rumble Resources
