Marmota, a South Australian mining exploration company, has signed a binding heads of agreement with G4 Metals to divest its rights to the West Melton copper tenement exploration licence, known as EL6701, in a A$1m ($647,160) deal.
The move aligns with G4’s strategy to bolster its portfolio of copper-focused assets in South Australia.
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The agreement is contingent upon G4 conducting exploration activities in 2025 and an initial public offering (IPO) in 2026, subject to market conditions.
Under the terms of the agreement, Marmota grants G4 an exclusive right to acquire the tenement as the latter advances towards its IPO.
If G4 does not achieve a successful IPO by 31 December 2026, Marmota reserves the right to pull out from the agreement.
G4 will issue shares to Marmota valued at A$1m, effective from the date of a successful IPO.
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By GlobalDataAdditionally, Marmota is entitled to performance payments in G4 scrip based on the discovery of significant copper resources within the tenement or G4’s Yorke Peninsula tenements.
The first payment of A$250,000 will be due upon declaring a JORC resource exceeding 50,000 tonnes (t) of copper, with a subsequent payment of A$250,000 upon declaring a resource surpassing 100,000t of copper.
Prior to the transfer of the tenement, G4 has made a preliminary cash payment of A$5,000 to Marmota to cover tenement fees and administration costs.
The transaction’s completion is also subject to receiving the necessary ministerial approval.
Marmota chairman Colin Rose said: “This deal has been specially structured with G4 Metals – a company being set up to advance copper projects in South Australia – in such a way that Marmota’s shareholders will continue to be exposed to the upside by taking a substantial stake in the new company.
“We look forward to working with G4 to finalise the sale, and to future success in developing these assets in a prime copper tenement, in an area with a proud history of copper mining.”
