Andromeda Metals has signed an agreement with ECL and its Environmental Metals Recovery (EMR) unit to sell exploration licence EL5984, related to the Moonta copper-gold project in Yorke Peninsula, South Australia.
The deal was executed through Andromeda’s subsidiary, Peninsula Resources.
Through the subdivision process in section 30AA of the Mining Act 1971, Andromeda will sell its interests in the licence to EMR.
These include a 100% interest in the Alford project area, a 100% interest in the Moonta project area (excluding the Moonta Porphyry project area) and a 90% interest in the Moonta Porphyry project area.
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The sale includes all the information, rights and obligations that Peninsula holds related to the projects.
The company also stated that if the subdivision process is not approved, it will sell the licence through a tenement transfer.
For the transaction to be completed, A$50,000 ($33,650) in cash needs to be paid, followed by the issue of 203,008 shares in ECL, which is 5% of its share capital.
As part of the agreement, Andromeda will also receive 10% of any successful mining operations at both the Alford West project area and Moonta project area.
After completing a site environmental lixiviant test (SELT), the company will receive a further 2.5% of ECL’s shares, totalling 101,504.
Once the mining lease is granted, Andromeda will receive a further A$150,000 in cash.
Presently, Thor Energy holds a 30% stake in ECL. After Andromeda acquires a 5% stake, Thor’s share in ECL will reduce to 28.6%.
Andromeda CEO and managing director Bob Katsiouleris said: “The sale of these assets continues our consistent approach to implementing our corporate strategy, through divesting non-core assets to support the commercialisation and development of the Great White Project.”
Thor Energy managing director Nicole Galloway Warland said: “The consolidation of EL 5984 allows ECL to actively pursue in-situ recovery [ISR] copper investigations at the Alford West Project area whilst considering new discoveries across the tenement.
“Thor looks forward to ECL expanding its exploration options for ISR of copper, as well as advancing site investigations at the Alford West Project.
“As the Alford Copper Belt extends through both Thor’s Alford East project and the Alford West area, all investigative activities are a positive advancement to the in-situ recovery assessment of the area.”
The Moonta project is in the Copper Triangle of Yorke Peninsula.
In 2018, Andromeda entered an earn-in and joint venture (JV) agreement with EML to form the Alford West ISR JV in the northern part of the tenement.
It focuses on the evaluation and potential copper extraction via ISR.