TSX-V- and Aim-listed Altus Strategies has signed purchase and sales, and net smelter return royalty (NSR), agreements with TSX-V-listed Stellar Africa Gold.
This relates to Altus selling its 100% interest in Aeos Resources, which, through an Ivorian subsidiary named Aucrest, owns the Prikro and Zenoula gold projects, in Côte d'Ivoire.
In return, Stellar will issue Altus with 2.5-million shares, with a market value of C$125 000, as well as 2.5-million share purchase warrants, each exercisable to buy one share at C$0.07 apiece.
Additionally, Altus will receive a 2.5% NSR royalty on the projects and possible further equity-based payments if the projects progress to certain extents.
Should Stellar define a resource that exceeds 500 000 oz of gold, including at least 250 000 oz in the indicated category, Stellar will issue more shares to Altus, valued at $250 000.
Should Stellar complete a definitive feasibility study on either project, Stellar will issue shares valued at $250 000 to Altus.
Altus is focused on realising value from a high-quality precious-metal-focused portfolio of royalty assets. The company says it is looking forward to Stellar’s exploration on the projects.
The Prikro project comprises a single 369.5 km2 exploration licence in the Prikro and Koun-Fao departments in eastern Côte d'Ivoire, about 240 km northeast of the capital of Abidjan.
The project is located 40 km northwest of the town of Agnibilekrou and 25 km west of the town of Koun-Fao, both of which can be accessed by asphalt roads from Abidjan.
The licence was selected owing to the presence of historically reported gold occurrences, prospective geology, and the existence of artisanal workings in the surrounding areas including along strike of a major northeast- to southwest-trending shear zone, which is interpreted to traverse the licence area.
Birimian-age greenstone rocks reportedly crop out extensively across the Prikro licence and represent Paleoproterozoic meta-sedimentary units, with associated granite to diorite intrusives, which are the dominant host setting for gold deposits across West Africa.
The Zenoula project comprises a single 400 km2 licence application, which is currently pending grant in the Marahoue department in central Côte d'Ivoire, about 300 km north of Abidjan. The project is located 100 km northwest of the city of Yamoussoukro, which can be accessed by asphalt roads from Abidjan.
Zenoula is centred within a Birimian-age granite greenstone belt, 65 km along strike from the Abujar project of ASX-listed Tietto Minerals.
Altus explains that mineralisation hosted on this property is not necessarily indicative of the Zenoula project. Zenoula targets a 22-km-long oblique structure, interpreted by historic air magnetic data.
Geologically, the project reportedly comprises metasediments, metabasalts and syntectonic granitoid intrusives.