Altus Strategies Plc announces that the Ministry of Energy Transition and Sustainable Development of the Kingdom of Morocco has issued a 10 year mining licence in respect of the Company’s 100% owned Agdz copper (“Cu”) and silver (“Ag”) project.
Agdz is located 14km southwest of the Bou Skour Cu-Ag mine in the eastern Anti-Atlas of the Kingdom of Morocco (resources and reserves at Bou Skour are not indicative of commercial mineralisation at Agdz). The Company’s Moroccan portfolio is held by its 100% owned subsidiary Aterian Resources Ltd. Aterian is subject to a potential vend-in and royalty generation transaction (the “Transaction”) with Eastinco Mining and Exploration Plc. The Transaction remains subject to Eastinco completing its proposed admission to the London Stock Exchange (“LSE”) Standard List.
“The granting of a mining licence for the Agdz Cu-Ag project in Morocco is a notable milestone for the project. The 10 year licence provides long-term security of tenure for Agdz, where the Company has discovered a number of significant copper and silver prospects. Agdz is one of 14 Moroccan projects to be vended by Altus to Eastinco subject to its proposed LSE listing.
Altus will hold royalties on all of the Moroccan projects, a royalty on a tantalum asset in Rwanda as well as 25% of Eastinco’s enlarged share capital with warrants to purchase up to an additional 10%. I look forward to updating shareholders on the potential transaction and our progress in Morocco,” Steven Poulton, Chief Executive of Altus, commented.
Agdz Mining Licence
A ten year 34.36 km2 mining licence has been granted to the Company’s 100% owned Moroccan incorporated subsidiary, Azru Resources SARL.AU. The licence will commence on 21 May 2021 and was granted in accordance with Morocco’s new mining law proclaimed in May 2016. The Company has made a number of discoveries at Agdz,
Potential Transaction with Eastinco
Agdz is one of 14 projects the Company intends to vend to Eastinco, subject to Eastinco completing its proposed admission on the LSE Standard List. Under the terms of the Transaction, the grant of the mining licence on Agdz will result in Altus holding 25% of the issued share capital of Eastinco upon its admission to the LSE.
Subject to admission, Altus will also be issued with five year warrants to purchase up to an additional 10% of the enlarged share capital of Eastinco. The exercise price of the first 50% of the warrants will be the weighted average of the Eastinco pre-IPO price and the market price on admission. The remaining 50% of the warrants will have an exercise price which is at a 100% premium to the first exercise price.