True North Copper (ASX:TNC) and Renegade Exploration (ASX:RNX) have entered a binding agreement regarding the latter’s Carpentaria Joint Venture (CJV) in the Cloncurry region of North Queensland.
The transaction will allow True North to acquire Renegade’s 22% interest in the joint venture, which comprises the Mt Marathon, Mt Avarice, St Andrews Extended, Fountain Range, and Corella River exploration permits.
This includes Renegade’s 35% interest in the Mt Avarice earn back. Mt Avarice hosts the Mongoose inferred resource estimate of 3.1 million tonnes @ 0.55% copper and 0.07 grams per tonne gold.
Renegade will receive a total consideration of $2.88 million for its stake in the joint venture, with True North paying $300,000 cash on signing, three million shares, two million performance rights on completion of the acquisition, as well as the transfer of its 91% interest in the Prairie Creek licence, which holds a value of $200,000.
The shares will be valued at $0.50 each, contributing $1.5 million to the transaction. Half of the shares will be held in escrow for six months, with the other half held for one year from signing.
The performance rights will be vested over two series, with the first series including 500,000 performance rights on first production at Mongoose-Taipan, or 36 months from completion.
Second vestment of performance rights includes 1.5 million rights when there is a new copper discovery in the area, at least 100m away from the existing Mongoose pit shell, meeting an agreed inferred resource hurdle within five years.
Renegade transaction
Renegade Exploration Chairman Robert Kirtlan says the transaction “represents a strong outcome for Renegade shareholders”.
“Mongoose was advanced through disciplined exploration, and we are now crystallising value from our investment in developing Mongoose to resource status while retaining upside through equity and performance‑linked exposure to the CJV permits,” Kirtlan says.
“As an added bonus, we now gain equity exposure to True North’s very strong copper exploration and development portfolio in Queensland’s northwest copper district.
“Importantly, this divestment reduces future funding obligations and dilution risk and allows us to focus on our primarily wholly owned North American exploration portfolio.
“Meanwhile, the consolidation of Mongoose with the adjacent Taipan deposit will enhance development potential under single ownership, a pathway better suited to a well-capitalised, development-focused operator.”
True North CEO Andrew Mooney says this agreement allows the company to consolidate its Cloncurry Project into a “larger, more coherent, and development-ready asset”.
“By bringing Mongoose and Taipan together, we are improving scale, grade, and overall project optionality,” Mooney says.
“Importantly, this allows us to take a more integrated approach to development as we move through the Prefeasibility Study, optimising mine planning, and defining the most efficient pathway to production.”
True North Copper is focused on advancing its portfolio of copper assets in North Queensland.
Renegade Exploration is an Australian-based exploration and development company with assets in both Australia and North America.
Write to Maddison Elliott at Mining.com.au
Images: Renegade Exploration
