PERTH (miningweekly.com) – ASX-listed Sunstone Metals has completed the divestment of its Viscaria copper project, in Sweden, to Copperstone Resources.
Copperstone paid Viscaria an initial A$3-million in cash and a further 160-million new shares, valued at around A$24.4-million, for the project.
An additional A$3-million and accrued interest of 7% a year will be paid in cash four months after the close of the transaction, or if Sunstone elected, the cash payment due could be converted into Copperstone shares at a 10% discount to the ten-day volume weighted average price of the company’s shares.
On the issue of an environmental permit for the Viscaria project, Sunstone will receive a further 46-million shares in Copperstone, as well as a further A$3-million in cash.
Sunstone will now hold a 39.2% shareholding in Copperstone, allowing shareholders to retain a significant interest in the Viscaria project, as well as in Copperstone’s other exploration assets in Sweden.
“We are excited to be involved with the new Copperstone as its largest shareholder and look forward to working with them to move its portfolio of projects forward and increase shareholder value,” said Sunstone MD Malcolm Norris.
“This is being undertaken in a strong copper price environment, and with increasing optimism from analysts that the copper price will continue to strengthen.”
Historically, the Viscaria copper project produced 12.5-million tonnes of ore at 2.3% copper, with the project currently estimated to host a mineral resource of some 52.4-million tonnes, grading 1.2% copper for 608 900 t of contained metal.