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Altair Minerals is streamlining its exploration portfolio by proposing to sell its non-core Queensland assets for $1.4 million, allowing the company to focus on its priority projects in South Australia and Guyana.
The company has entered into a binding term sheet to sell its wholly owned subsidiary Cobalt X to Nexum Resources, an unlisted public company planning an initial public offering (IPO) within the next six months.
Under the agreement, Altair will receive seven million fully paid ordinary Nexum shares at a deemed issue price of $0.20 each, representing $1.4 million in consideration.
The transaction will see Altair divest its interests in the Wee Macgregor and Mt Cobalt projects in Queensland, including mining leases near Mt Isa and exploration permits covering the Mt Cobalt, Success Mine and Mt Gordon areas.
Cobalt X holds an 80 per cent beneficial interest in three Wee Macgregor mining leases through a farm-in agreement with Mining International, which retains the remaining 20 per cent.
It also holds full ownership of four exploration permits associated with the Mt Cobalt project.
Altair said the proposed sale was consistent with its strategy of streamlining its portfolio and realising value from assets outside its principal exploration focus.
The company is prioritising its Greater Oko project in Guyana and Olympic Domain project in South Australia, both of which it considers prospective for major mineral discoveries.
Completion of the transaction remains subject to several conditions, including Nexum completing due diligence, obtaining necessary regulatory approvals and securing any required third-party or shareholder consents.
Nexum’s planned IPO has not yet been completed, meaning the $1.4 million consideration represents the deemed value of the shares rather than cash proceeds from the sale.
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