Altus Strategies jumps after forking over Cameroon licences
Altus Strategies climbed on Monday after the company terminated its joint-venture, Aucam Resources, selling its stake in mining licenses in Cameroon to joint-venture partner Canyon Resources.
Altus Strategies
46.00p
16:19 16/08/22
FTSE AIM All-Share
755.28
17:14 26/04/24
Mining
10,486.86
16:59 26/04/24
In exchange for the Birsok and Mandoum licences, which cover the "potentially substantial" Minim Martap bauxite deposit in Central Cameroon, Altus Strategies will receive up to 30m Canyon shares with a current value of C$5.8m (£3.4m).
Steven Poulton, chief executive of Altus, said: "We are delighted to reach this deal with Canyon which is designed to monetise our bauxite projects in Cameroon. The deal will generate a significant additional shareholding for the Company in ASX listed Canyon."
The deal also ensures that the AIM traded company will receive a US$1.50 per tonne "life of mine" royalty on bauxite ore mined and sold from the project, while the under US$0.125m that Altus has spent on the project has been repaid in cash by Canyon.
A JORC compliant resource estimate for the Minim Martap project of 550m tonnes at an average grade of 45.5% total aluminium oxide has been announced by Canyon.
"This series of transactions showcases the strategic value of our Africa focused and counter-cyclical project generator business model," said Poulton.
A statement from analysts at SP Angel said: "The finalisation of the deal allows to monetise bauxite assets in the Altus portfolio while also retaining exposure through a lifetime royalty should licenses get incorporated into the future mining plan at Minim Martap. The sale reflects an attractive investment return for Altus given that the company spent only $125k on generating the project prior to the JV while Canyon covered all of the following exploration expenses."
Altus Strategies' shares were up 5.42% at 3.11p at 1236 GMT.