Venari Minerals (ASX:VMS) has entered into a binding heads of agreement (HoA) with Alien Metals (AIM:UFO) to divest its wholly owned Georgina Basin Iron Oxide Copper-Gold (IOCG) Project in the Northern Territory.
The Georgina Project is held by Venari’s wholly owned subsidiary, Knox Resources.
The asset will be divested for an estimated sale price of $386,000, comprising £100,000 ($164,509) cash and 90.26 million shares in Alien Metals.
The share distribution is valued at £100,000, based on a five-day volume weighted average price.
Venari will also receive $277,620 in Research and Development Tax Incentive refunds following the completion of this sale.
In addition to this sale, Venari will enter a 12-month services agreement with Alien Metals regarding the provision of technical services at the project.
Alien Metals will pay $120,000 annually for Venari’s services. Additional fees may incur if Venari undertakes significant work in respect of projects unrelated to Georgina Project.
The HoA is subject to Alien Metals completing technical, financial, and legal due diligence, with three months to satisfy these requirements.
Venari expects Alien Metals to have completed these conditions by 31 July 2026.
Venari Chairman Tony Leibowitz says the disposal of non-core assets provides the company with the “best opportunity to enhance shareholder value”.
“I am pleased that this transaction represents the first step in the company’s previously announced strategy of concentrating its efforts on the Red Mountain Project, with a focus on lithium and critical minerals,” Leibowitz says.
In January 2024, Venari agreed to pay Greenvale Energy (ASX:GRV) an additional 5 million shares, pre-consolidation, or 500,000 shares, post the sale of the Georgina Basin project.
The sale of the Georgina Project triggers this obligation, requiring Venari to issue 500,000 ordinary shares at completion of the transaction.
Vincent Fayad is proposed to be appointed as an executive director of Alien Metals, pursuant to an independent consultancy arrangement.
The appointment is expected to occur following completion of the Georgina Basin disposal. Fayad’s appointment is not conditional upon completion of the disposal occurring.
Fayad’s role as non-executive director of Venari remains unchanged.
The company will be attending the Noosa Mining Investor Conference, held from 22–24 July, at Peppers Noosa Resort, Noosa Heads, Queensland.
Mining.com.au is an official media partner of this year’s conference.
Write to Maddison Elliott at Mining.com.au
Images: Venari Minerals
