(Alliance News) - Altus Strategies PLC on Thursday said its subsidiary Aeos Resources Ltd has signed an option agreement with Firering Holdings Ltd, in respect of the application for the Toura nickel-cobalt licence, located in the west of the Republic of Cote d'Ivoire.
"Toura is strategically located within an emerging and prospective nickel-cobalt province," said Altus Chief Executive Steven Poulton.
The exploration company said, following the grant of Toura licence, Firering will pay Altus EUR15,000 in cash and Aeos will transfer to Firering a 95% interest its locally incorporated and 100% owned subsidiary Apalex Sarl.
The 5% ownership retained by Aeos in Apalex will be subject to anti-dilution provisions, until such time that Firering has invested a total of USD1 million into Apalex. Thereafter Aeos will retain co-funding rights.
Aeos will also be granted a royalty on gross revenue generated by the sale of ore minerals mined from Toura, net of transportation costs, it said. The royalty will be subject to a separate agreement, Altus said, which will be entered into between Aeos and Firering, within six months of the grant of the application.
"We look forward to the grant of the application and to working with Firering thereafter," added Poulton.
Altus shares were trading 9.3% lower on Thursday in London at 4.40 pence each.