Australian developer Stirling Resources has completed its planned share transfer and loan to Matilda Zircon as part of the expansion of its portfolio of zircon projects.
Under the deal, Stirling will transfer all its northern Australian zircon assets to Matilda Zircon to create a dedicated mineral sands development company.
Under the transaction, Stirling has acquired 171 million shares in Matilda from Territory Resources for A$1.75m and received 35 million shares from the conversion of a A$350,000 loan provided to Matilda.
Stirling now holds 76% of Matilda’s issued capital and Territory has no further interest.
The settlement of the share and loan transfer is another step toward commencement of zircon mining activities in the Northern Territory, Stirling Resources managing director Michael Kiernan said.
“There are no foreseeable issues to affect the transfer of tenements and we look forward to settling this last element of the transaction very shortly,” Kiernan said.
Stirling will acquire another 79 million Matilda shares after receiving the ministerial approvals for transfer of tenements, increasing its total interest to 82%.
The deal gives Stirling access to zircon projects on the Tiwi Islands and Cape York, and mineral sands assets in Western Australia, the Northern Territory and Indonesia.
Stirling and Matilda will work towards resuming operations at the Tiwi Islands zircon project and a significant exploration programme at the Cape York Zircon project in Queensland, Stirling said.