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Altus Strategies receives 10 million shares in Canyon Resources

Published by
Global Mining Review,


Altus Strategies Plc has announced that it has received 10 million fully paid ordinary shares (second shares) in ASX listed Canyon Resources Ltd. The second shares are the final tranche to be issued to Altus in accordance with the previously announced joint venture termination agreement (JVTA) between Altus and Canyon dated 9 February 2019 regarding the Birsok bauxite JV project in the Republic of Cameroon.

Highlights

  • Altus has received 10 million Canyon shares with a current market value of £0.64 million/CAN$1.15 million.
  • Total of 25 million Canyon shares have been received in satisfaction of the JVTA.
  • Altus retains a US$1.50/t royalty on Birsok and a 4.25% equity interest in Canyon.
  • Birsok is contiguous with Canyon's Minim Martap project and is within 10 km of a rail line.
  • Canyon has announced a JORC (2012) compliant mineral resource estimate (MRE) at the Minim Martap Project of 892 million t at an average grade of 45.1% total aluminium oxide (Al2O3) and total 2.8% silicon dioxide (SiO2), comprising:
    • Indicated 839 million t averaging 45.2% Al2O3 and 2.8% SiO2.
    • Inferred 53 million t averaging 43.8% Al2O3 and 3.1% SiO2.
  • MRE is in accordance with the JORC Code, an acceptable foreign code for the purposes of NI 43-101.

Shares issued under JVTA

Under the terms of the JVTA, Canyon has issued a total of 25 million Canyon shares to Altus in two tranches. In accordance with a voluntary escrow deed between Altus and Canyon, the second shares are subject to a 12-month voluntary escrow agreement from the date of issue. Altus currently holds 26 100 000 fully paid ordinary shares in Canyon, representing an approximate 4.25% interest in Canyon on an undiluted basis.

Sale and purchase and royalty agreements

As previously announced by the company on 11 February 2019, Altus and Canyon also entered into a sale and purchase agreement (SPA) and royalty agreement (RA) on 9 February 2019 in respect of Birsok. The SPA transfers a 100% interest in the share capital (Aucam shares) of the company's subsidiary Aucam Resources Ltd, which is incorporated in the Republic of the Seychelles, to Canyon. Aucam is the 100% owner of Aucam SA, the holder of Birsok.

The SPA and RA remain subject to certain conditions precedent, including the transfer of the Aucam shares, the reorganisation of Aucam as well as obtaining any regulatory or other approvals as may be required. Under the terms of the SPA, Canyon will issue 5 million ordinary shares to Altus (subject to a 12-month voluntary escrow), upon the execution of a mining convention on the Minim Martap Project. Altus will also receive a US$1.50/t 'life of mine' royalty on sales of ore mined from Birsok as governed by the RA.

While Canyon is not a related party to Altus under the AIM rules, the Chairman of the company is also a Non-Executive Director of Canyon and as such, has recused himself from the decision-making process in respect of the JVTA, SPA and RA.

Read the article online at: https://www.globalminingreview.com/finance-business/12022021/altus-strategies-receives-10-million-shares-in-canyon-resources/

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