PERTH (miningweekly.com) – Junior Astro Resources has struck a definitive deal with fellow-listed Greenvale Mining to acquire a majority interest in the Georgina Basin iron-oxide/copper/gold project, in the Northern Territory.
Astro will acquire an 80% interest in Greenvale’s subsidiary Knox Resources, which owns the Georgina Basin project.
The two companies in June announced the transaction under which Greenvale would acquire 1.15-billion Astro shares, or some 19.7% of the company’s existing share capital, along with a 2% net smelter royalty.
Astro previously said that the acquisition provided the company with a low-cost entry into a proven lithium producing district, representing an exciting opportunity for the company to gain exposure to a future-facing battery commodity with an exceptional growth outlook.
Greenvale said on Tuesday that the sale of the majority stake in Knox followed the board’s decision to pursue Greenvale’s strategic focus on becoming a sustainable producer of bitumen and a significant participant in the renewable energy sector. It is considered that the retention and direct management of the Georgina Basin project is not compatible with the company’s revised strategy.
Subject to the receipt of Astro shareholder approval and the successful completion of the proposed transaction, Greenvale and Astro have also agreed to undertake a work programme consisting of a deep diamond hole at the Leichhardt East prospect and geophysical surveying over the Ranken project area immediately following completion.
In accordance with the terms of the proposed transaction, Astro will cover 80% of the cost of the programme and Greenvale 20%. These programmes are expected to be subject to a grant from the Northern Territory government.