Middle Island Resources (ASX:MDI) has agreed to sell its Georgina and Barkly Project exploration licences in the Northern Territory to Alroy Copper for $50,000 cash plus a 1.5% net smelter return (NSR) royalty on future copper production.
The divestment removes approximately $400,000 in annual forward expenditure commitments including rates, rents, and exploration spend. Middle Island will also receive the return of its $68,332 rehabilitation bond currently held by the Northern Territory Government.
The transaction covers nine exploration licences across approximately 4,200km2, comprising seven granted and two pending licences.
Alroy Copper has paid annual rent totalling approximately $84,364 on some of the tenements and will cover all rental payments until completion.
Middle Island Executive Chairman Daniel Raihani says the transaction represents “sensible portfolio management” for the company.
“This transaction […] removes close to $400,000 per annum in forward funding obligations while retaining potential upside through a significant royalty,” Raihani notes.
The 1.5% NSR royalty provides Middle Island with ongoing exposure to any future development of the copper assets while eliminating immediate funding obligations.
Middle Island has refocused its exploration activities on its Serbian portfolio, which comprises 13 licences covering approximately 590km2 across the Bobija, Timok, and Priboj project areas.
Serbia’s Western Tethyan Mineral Province hosts significant deposits including Zijin Mining Group’s (SHA:601899) Čukaru Peki Copper-Gold Project and DPM Metals’ (TSX:DPM) Vareš and Čoka Rakita projects.
The Priboj Project covers 195km2 across three exploration licences in central-western Serbia, located along a regional geological boundary prospective for volcanogenic massive sulphide copper deposits and sediment-hosted replacement-style gold deposits.
The NT assets being divested include exploration licences granted between 2019 and 2023, with expiry dates ranging from 2027 to 2029.
Middle Island Resources is an Australian mineral explorer focused on advancing precious and base metals projects in Serbia.
Write to JC Villarba at Mining.com.au
Images: Middle Island Resources
