PERTH (miningweekly.com) – ASX-listed mineral sands producer Diatreme Resources and its joint venture (JV) partner Superior Resources have both agreed to vend their interest in the Tick Hill gold project, in Queensland, to Carnaby Resources ahead of its initial public offering (IPO).
Diatreme will receive a minimum of 3.2-million shares, and a maximum of 4.5-million shares, priced at 25c each, for its 75% share in the project, at Carnaby’s IPO.
Diatreme will hold a 4.5% interest in Carnaby post the IPO.
Superior has also agreed to divest of its 25% interest in the project for between 1.07-million and 1.5-million shares in Carnaby, giving the company a 1.5% interest in Carnaby at the close of the IPO.
Under the current JV agreement, Superior could earn a 50% interest in the Tick Hill gold project by spending a minimum of A$750 000 on exploration, paying Diatreme A$100 000, and paying the JV partner 50% of the environmental bond.
To date, Superior has spent around A$350 000 on the project, and has not met its full earn-in requirements.
With the Carnaby transaction, the original JV agreement will be terminated.
Diatreme CEO Neil McIntyre said the agreement was a win-win for shareholders, allowing the company to refocus on its flagship Cyclone zircon project and the emerging Cape Bedford silica/heavy minerals project.
Meanwhile, ASX-listed Syndicated Metals has also entered into an agreement with Carnaby to divest of its 82.5% interest in the Southern Hub exploration tenements, in north Queensland.
The Southern Hub tenement package comprises around 293 km and forms part of Carnaby’s strategy to consolidate the ground around the Tick Hill gold and Duchess copper-gold deposits.
If the option agreement is exercised, Syndicated will be issued 4-million Carnaby shares, at a price of 25c each, which will result in the company holding between 4% and 5.6% of Carnaby at the close of the IPO and at the time of its proposed listing to the ASX.
Syndicated told shareholders that the transaction provided the company with the retention of a 17.5% free-carried interest in the Southern Hub tenements up to a decision to mine, as well as exposure to the consolidate tenure around Tick Hill.
The deal also provided the company with exposure to a portfolio of exploration properties within Western Australia, that will form part of the Carnaby IPO, as well as a significant shareholding in a well funded exploration group.