Altus and Corben sign agreement for Zolowo and Laboum projects

24 April 2019 (Last Updated April 24th, 2019 12:44)

British company Altus Strategies has signed a non-binding term sheet for the sale of the Zolowo gold project in Liberia to Corben Resources, and has established a joint venture with the company to manage its Laboum gold project in northern Cameroon.

British company Altus Strategies has signed a non-binding term sheet for the sale of the Zolowo gold project in Liberia to Corben Resources, and has established a joint venture with the company to manage its Laboum gold project in northern Cameroon.

Altus will retain a 2.5% net smelter return (NSR) production royalty on both projects.

The 466km² Zolowo exploration licence is located in Lofa County of north-western Liberia, around 190km northeast of the capital city of Monrovia.

The 189km² Laboum exploration licence is located in north-eastern Cameroon, approximately 110km southeast of the provincial capital of Garoua.

The Zolowo and Laboum projects are held by Auramin, a subsidiary of Altus.

Corben, a public unlisted company, has been created to explore for and develop gold projects in sub-Saharan Africa.

Subject to entering definitive agreements, Altus will receive milestone-based cash and equity payments from Corben and operate the Laboum project during the first 24 months.

Following the signing of the term sheet, a the companies will complete due diligence over the next two months.

Auramin has two subsidiaries in the Republic of Seychelles, Eagle Resources and Mansion Resources. Eagle owns the Zolowo gold project and Mansion is the owner of the Laboum gold project.

After the completion of the deals, Corben will change its name to Auramin. In the event of Corben raising an initial equity capital of A$350,000, Corben will pay Altus an exclusivity payment of A$50,000.

Subject to Corben listing on the ASX, Altus will transfer Eagle to Corben in return for a cash payment to Altus of A$82,500; 10% of the issued equity capital of Corben upon its initial public offering; milestone payments of A$500,000 for every one million ounces in resources; and a one million ounce reserve.

“Altus will receive milestone-based cash and equity payments from Corben and operate the Laboum project during the first 24 months.”

Corben will also have the right to purchase 1% of the NSR by the payment of $2m, and Altus will provide exploration services to Corben at Zolowo for the first 24 months for 10% more than the cost of the return.

Corben and Altus will enter a joint venture whereby Corben could earn up to a 100% interest in Mansion.

It will have the right to earn an initial 51% interest in Laboum; earn an additional 19% interest in Laboum; earn a further 20% interest in Laboum in Stage 3 (definitive feasibility study); and co-fund Stage 4 (mine construction), or allow Corben to earn an additional 10% interest in Laboum.

The completion of the agreements is expected to take place before 14 October 2019.