(Alliance News) - Mining royalty firm Altus Strategies PLC on Tuesday said it has received a first tranche of shares in Australia-listed Canyon Resources Ltd as part of a joint-venture termination agreement the two companies struck last year.
Altus has received 15 million Canyon shares, valued at roughly GBP1.1 million altogether. Altus now owns 16.1 million Canyon shares, representing a 3.4% stake in the company.
Under the agreement, which Altus reported in February 2019, the company was to transfer all of its share capital in subsidiary Aucam Resources Ltd to Canyon. Aucam is the holder of Altus' Birsok and Mandoum licences in central Cameroon. The licences cover the Minim Martap bauxite deposit.
Bauxite is a type of ore that is used in aluminium production.
In exchange, Altus said it would receive 30 million Canyon shares. Altus also will receive a USD1.50 per tonne royalty on bauxite ore mined and sold from Minim Martap.
Altus shares were untraded in London on Tuesday morning, last quoted at 7.65 pence each.
By Eric Cunha; ericcunha@alliancenews.com
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