JSE- and NYSE-listed precious metals miner Sibanye-Stillwater on Friday announced the conclusion of a transaction with Regulus Resources and the newly formed Argentinian subsidiary of Regulus, Aldebaran Resources, which was established to unlock value at its Altar copper/gold project, in San Juan province, Argentina.
Sibanye and Regulus entered into a strategic partnership on June 29.
Sibanye will benefit from upfront proceeds of $15-million from Aldebaran, while retaining a direct interest in the Altar project of either 40% or 20%, should Aldebaran exercise its additional earn-in option, as well as an indirect exposure through its 19.9% shareholding in Aldebaran.
Sibanye will also gain indirect exposure to the Argentinean exploration assets that Aldebaran will acquire from Regulus as part of the arrangement, including the Rio Grande and Aguas Calientes projects.
Aldebaran is expected to start trading on the TSX Venture Exchange in the next five business days.
“We are excited about this strategic partnership that unlocks immediate value for this greenfield exploration project, while enabling the experienced Aldebaran team to explore the upside potential of the Altar project by providing it with the focus they bring,” commented Sibanye CEO Neal Froneman.