TSX-V- and Aim-listed Altus Strategies has signed a nonbinding term sheet with TSX-V-listed Stellar Africa Gold for the sale of its Prikro and Zenoula gold projects, in Côte d'Ivoire.
Altus will receive an initial payment of 2.5-million Stellar shares, with a market value of about C$87 500, and 2.5-million share purchase warrants.
Each warrant is exercisable to buy one Stellar share for C$0.07 apiece and is valid for 24 months.
Altus will also receive a 2.5% net smelter return royalty on the projects, as well as further equity-based payments if the projects progress.
“We believe the proposed transaction not only validates the value we have identified in the projects, but that we have partnered with the right company to progress these projects through to the next key phases,” says Altus CEO Steven Poulton.
He adds that the company’s focus remains on delivering a high-quality, diversified and precious metals-focused portfolio of assets to its shareholders.
The proposed transaction further underscores Altus’ dynamic royalty generating business model.