Marmota (ASX:MEU) has entered into a binding heads of agreement with privately held G4 Metals, for the sale of its West Melton copper tenement in South Australia.
Under the agreement, G4 will issue $1 million worth of shares to Marmota. The company may also be able to attain a follow up payment of $500,000 in G4 scrip at the 14-day volume weighted average price (VWAP) of G4 shares, upon achieving performance quotas.
Separately, G4 has made a $5,000 cash payment to Marmota.
G4’s progress on the West Melton exploration project will be subject to market conditions and the progress of an initial public offering (IPO), that is currently proposed for 2026.
Marmota, which has a market capitalisation of $50.66 million, notes that if G4 has not received a successful IPO by 31 December 2026, the company will be able to withdraw from the agreement.
Chairman Colin Rose said while the company is focused on other gold, titanium and uranium projects, the aforementioned acquisition will allow it to maintain an interest in the copper project.
“This deal has been specially structured with G4 Metals – a company being set up to advance copper projects in South Australia – in such a way that Marmota’s shareholders will continue to be exposed to the upside by taking a substantial stake in the new company,” Rose says.
“We look forward to working with G4 to finalise the sale, and to future success in developing these assets in a prime copper tenement, in an area with a proud history of copper mining.”
Marmota is a South Australian exploration company that focuses on gold, copper and uranium.
G4 Metals is a resource company focussing on the discovery and production of minerals in South Australia.
Write to Maddison Elliott at Mining.com.au
Images: Marmota
