LONDON (Alliance News) - Altus Strategies PLC on Tuesday said it intends to give Raptor Resources Ltd the option to acquire its exploration subsidiary, Atlantic Resources Ltd.
A letter of intent has been signed and stipulates that, in return for a 100% interest in Atlantic, Altus will receive from Raptor a net smelter return royalty, an upfront cash payment, and Raptor shares.
Atlantic is Morocco-focused. It currently has four copper and other base metal projects, which Altus will continue to operate for the initial period.
Raptor intends to list on the Australian Stock Exchange.
"On completion of the proposed deal, this will mark our third transaction with an Australian Stock Exchange-listed company, which include a joint venture on an Altus gold exploration project in southern Mali with Resolute Mining Ltd and a joint venture on an Altus bauxite exploration project in Cameroon with Canyon Resources Ltd," said Altus Chief Executive Steven Poulton.
"Altus is presently in discussions with Canyon in respect of vending-in the joint venture project in to Canyon, in exchange for further Canyon equity plus a royalty. We presently hold 8 million shares in Canyon, which have a current market value of approximately GBP1.2 million," Poulton added.
Shares in Altus Strategies were untraded at 4.50 pence on Tuesday.