Finalises Sale Of Prikro And Zenoula Projects
Altus Strategies Plc (AIM: ALS, TSXV: ALTS) has completed the sale of the Prikro and Zenoula gold projects located in the Republic of Côte d’Ivoire to TSX-V listed Stellar Africa Gold Inc. in return for equity and warrants in Stellar, a Net Smelter Returns (NSR) royalty on the Projects and potential future Project milestone payments.
Highlights:
- Altus has sold a 100% interest in two Ivory Coast gold projects and has received:
- a 2.5% NSR royalty on the Projects
- 2,500,000 Stellar shares with a current market value of approximately C$125,000
- 2,500,000 share purchase warrants, each exercisable to purchase a Stellar share for 24 months at C$0.07
- Subject to the progress of the Projects, Altus will receive further equity based payments
- Transaction initially announced on 16 September 2020
Steven Poulton, Chief Executive of Altus, commented:
“We are pleased to close this royalty and equity transaction with Stellar on two prospective gold projects in Ivory Coast,” Altus Chief Executive, Steve Poulton, said.
“Altus is focused on realising value from a high quality, diversified and precious metal focused portfolio of royalty assets. This transaction further underscores our royalty generation strategy and we look forward to Stellar’s exploration progress on the Projects.”
Stellar has acquired a 100% interest in Aeos Resources Ltd, a formerly wholly owned Seychelles incorporated subsidiary of the Company. Through its Ivorian subsidiary Aucrest SARL, Aeos holds a 100% interest in the Projects.
In consideration, Altus has received:
- 2,500,000 units of Stellar, each unit consisting of one common share and one non-transferable share purchase warrant exercisable to purchase a common share for two years at C$0.07 per share. The shares and any shares issuable on exercise of the warrants are subject to a four month restricted resale (hold) period expiring March 26, 2021; and
- a 2.5% NSR royalty on each Project. Stellar may repurchase up to 1.0% of each royalty for US$500,000 for each 0.5%.
Contingent upon reaching exploration milestones on each Project, Stellar will also make two further issuances per Project of shares, equal to US$250,000 in value:
- upon completion of an NI 43-101 resource estimate of not less than 500,000 ounces of gold with not less than 250,000 ounces in the Inferred category; and
- upon completion of a definitive feasibility study
