Altus Strategies Plc has executed a Sale and Purchase Agreement (“SPA”) with Firering Strategic Minerals Plc (“Firering”) for the sale of the Company’s wholly-owned Toura nickel-cobalt licence application located in western Côte d’Ivoire (“Toura” or the “Project”).
Steven Poulton, Chief Executive of Altus made the announcement and said in consideration for the Project, Firering will grant the Company a Gross Revenue Royalty (“GRR”) of up to 1.0% on nickel and cobalt sales from the Project and pay the Company €15,000.
“We are pleased to generate this new nickel-cobalt royalty on our Toura application in Côte d’Ivoire, which is strategically located in an emerging and highly prospective nickel-cobalt province. Altus will receive a gross revenue royalty of up to 1.0% on any future production from the project and a nominal cash consideration upfront. This transaction illustrates the value of our ‘boots on the ground’ approach, where Altus can generate royalties at low cost, by directly staking and monetising projects. We look forward to following Firering’s progress as it advances the Project,” said Steven Poulton.
Toura Nickel-Cobalt Project
The Project comprises an application for a nickel-cobalt mineral prospecting licence with an area of approximately 168 km2, in western Côte d’Ivoire (“Application”). The Application targets potential nickel-cobalt mineralisation within the lateritic profile overlaying mafic and ultramafic intrusive rocks.
The region is considered prospective for such nickel-cobalt mineralisation, with several known deposits in the vicinity, including the Sipilou, Foungouesso and Moyango projects (located 0-35 km north-west of Toura) owned by Nickel de l’Ouest Côte d’Ivoire and the Samapleu and Grata projects (located 35 km west of Toura) owned by Sama Resources Inc . Mineralisation hosted on these properties is not necessarily indicative of mineralisation hosted at Toura.
Terms of the SPA & Gross Revenue Royalty
Upon closing of the SPA, Altus will transfer to Firering a 100% interest in the Company’s wholly-owned Seychelles subsidiary, Altar Resources Limited (“Altar”). Altar is the 100% owner of Apalex SARL, an Ivorian incorporated company which has submitted the Application. In addition to the GRR, Firering will also pay Altus €15,000. The SPA follows and replaces an option agreement in respect of the Project previously agreed with Firering (see Company announcement on 25 July 2019).
The GRR will be calculated as the gross proceeds received from sales from the Project, less transportation costs. The GRR will be subject to a separate agreement, which will be entered into between the Company and Firering, within six months of the grant of the Application.
