Mineral explorer and developer Pivotal Metals (ASX:PVT) has signed a deal to sell its San Finx tin and tungsten mine in Spain to Metáis Estratéxicos(MESL) in a €1.15 million deal.
Pivotal, which has a $11.86 million market capitalisation, says it is divesting the Spanish mine to narrow its focus on its portfolio of battery metals projects in Canada.
The company reports it has made no consideration payments to the previous owner, Valoriza Mineria, under a sale agreement signed on 27 December 2021, and has only incurred working capital costs. As a result, MESL will assume all obligations payable to Valoriza.
Under the agreement, MESL will pay Pivotal a 3% royalty on sales capped at US$1 million, starting from the quarter after it pays Valoriza the full consideration. This consideration, along with €150,000 paid upfront, results in a total consideration payable of €1.15 million to Pivotal, the majority of which is deferred until after production.
Pivotal reports the sale of San Finx represents a ‘significant’ milestone in completing its ‘strategic’ shift to Canadian battery metals. Since 22 May 2023, the company has secured a suite of assets in Canada, including the Horden Lake Copper-Nickel-Platinum Group Metal (PGM) deposit in Ontario and a package of exploration claims along the Belleterre-Angliers Greenstone Belt (BAGB).
After raising $4 million through a share capital raise announced on 16 May 2023, Pivotal reports it is ‘well-funded’ for the Canadian 2023/2024 drilling and survey program across its 2 projects.
The company says extensive forest fires in Quebec have resulted in Pivotal rescheduling its order of activities with an immediate focus on BAGB, noting that a winter drill program at Horden Lake will deliver costs savings given the use of a temporary land access track as opposed to the use of helicopters to complete a planned 8,000m program.
Commenting on the sale, Pivotal Metals Managing Director Steven Tuner says: “Pivotal believes that the Canadian portfolio offers exceptional upside to shareholders and has been keen to ensure that shareholder funds are focussed on the realisation of that value. The board has agreed that a clean exit from San Finx is the best outcome for shareholders.”
“The board has agreed that a clean exit from San Finx is the best outcome for shareholders”
Pivotal Metals is an ASX-listed mineral explorer focused on developing its flagship Horden Lake Property, along with the Midrim, Laforce, Alotta, and Lorraine projects in the BAGB in Quebec.
On 16 May 2023, Pivotal received commitments to raise $4 million through a placement to advance its portfolio of battery metals projects in Quebec.
Write to Harry Mulholland at Mining.com.au
Images: Pivotal Metals Ltd
