CuFe Ltd (ASX: CUF) (CuFe or the Firm) is happy to announce that its wholly owned subsidiary Jackson Minerals Pty Ltd (Jackson) has entered right into a binding sale and buy settlement with Northern Star (Saracen Kalgoorlie) Pty Ltd and Northern Star (KLV) Pty Ltd (collectively Northern Star) for the sale of Jackson’s 2% Internet Smelter Royalty over Northern Star’s Crossroads gold challenge.
HIGHLIGHTS
- Sale of Crossroads gold royalty to challenge proprietor Northern Star for $4m money.
- Deal quick tracks receipt of funds and provides a sure consequence quite than ready for royalty funds to begin after mine growth happens and ore processing commences.
- Funds for use to progress works on CuFe’s potential suite of exploration and growth property, together with at its superior 55% owned Tennant Creek Copper / Gold challenge, which hosts an present JORC useful resource of seven.3MT of Copper at 1.7% and 0.6g/t Gold (check with ASX announcement 3 April 2023).
- The Tennant Creek area has been the main focus of appreciable exercise not too long ago. Along with CuFe’s collaboration settlement with Emmerson Sources and Tennant Mining (refer ASX announcement 28 October 2024), AIM and JSE listed gold miner Pan African Sources has introduced an settlement to buy personal Tennant Creek centered gold developer Tennant Creek Mining Group (TCMG) for US$54 million plus debt assumed, demonstrating its religion within the area.
Jackson was granted the royalty over Crossroads as a part of the consideration for the sale of M24/462 (which hosts the deposit) to Barrick Gold in 2013 and following varied assignments Northern Star is the present proprietor of that mining licence. As introduced by CuFe on 31 Could 2024 Northern Star acquired approval from the regulator DEMIRS for his or her mining proposal at Crossroads earlier this yr which facilitates growth of the challenge.
The sale and buy settlement is predicted to finish inside 5 enterprise days of signing until in any other case agreed by the events.
The Firm intends to make use of the sale proceeds to progress its suite of exploration and growth initiatives. This can concentrate on Tennant Creek however will embrace allocations to our different initiatives comparable to the potential West Arunta area the place a heritage settlement was not too long ago signed to facilitate exploration and approvals for its Yarram iron ore challenge close to Darwin.
CuFe Government Director Mark Hancock commented “We’re happy to have been in a position to interact with Northern Star on their plans for Crossroads and this has assisted us in understanding the timing and tonnage potential of the royalty stream.
Having thought of the professionals and cons of holding the royalty via to graduation of mining operations and chance receiving extra funds over an extended time period, we imagine the understanding of realizing what we’ll obtain from the deal and having the ability to plan our work packages accordingly provides the most suitable choice for us.
The worth of royalty streams is at all times unsure once they type a part of the consideration for a tenement sale so to obtain $4m money for an asset that was bought greater than 10 years in the past is a superb outcome for CuFe and its shareholders.
The Tennant Creek space is sizzling proper now and these funds will allow us to extend our focus there in addition to on our different potential initiatives.”
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