Aldoro Resources (ASX: ARN) has entered into a binding option agreement to acquire 100% of Altilium Metals Limited and its advanced exploration projects in the Murchison Region of Western Australia.
The projects include the Penny South Gold Project in the Youanmi Gold Mining District and the multi- commodity Narndee Project Area.
Aldoro’s chairman Jeremy King said the new assets are a strategic fit with the company’s portfolio.
- The Penny South Gold Project is– contiguous with the Penny West Gold Project owned by Spectrum Metals, with over 2.5 km strike of Penny West shear;
- The Narndee Project Area consists of the Narndee Igneous Complex (Ni-Cu- PGM), and Kiabye Greenstone Belt (Au);
- The Unaly Hill South (Au) – is located at the convergence of the major Youanmi and Yuinmery regional shears; and
- The Windimurra Igneous Complex (Ni-Cu-PGM, Li) contains recently identified lithium bearing pegmatites
“We are extremely pleased to reach agreement for the acquisition of Altilium Metals,” Mr King said.
“The addition of their exciting exploration assets, including the Penny South Gold Project, greatly enhances Aldoro’s existing portfolio and builds on our long-term strategy of creating a significant Western Australian exploration and development company.”
Mr King also revealed that Altilium’s Caedmon Marriott and Rhod Grivas will be joining the Aldoro’s and that their experience will greatly assist Aldoro going forward.
Altilium’s Managing Director Caedmon Marriott said that given the current gold price the combined company’s immediate focus will be on Altilium’s gold projects – the flagship Penny South Gold Project, underexplored Kiabye Greenstone Belt and Unaly Hill South.
“Like Aldoro, we are also very positive on the long- term outlook for nickel and are excited by their existing collection of nickel assets, we look forward to see the results of the upcoming maiden drilling program at the Leinster Project, as well advancing our Narndee Igneous Complex Ni-Cu-PGM Project,” Mr Marriott said.
The key terms of the acquisition are as follows:
- Aldoro will pay a $50,000 option fee to secure the exclusive option to acquire 100% of the issued share capital of Altilium.
- If the Option is exercised, at completion Aldoro will issue Altilium shareholders a total of 10,800,000 fully paid ordinary shares to acquire all outstanding shares in Altilium Metals Limited at a deemed price of $0.15 per share.
- Caedmon Marriott and Rhod Grivas to join the board of Aldoro at completion of the acquisition.
- Aldoro will assume a maximum of up to $250,000 of liabilities and debts held by Altilium, consisting of $100,000 payment to the original vendors of the Narndee and Windimurra Projects, and up to $150,000 of outstanding creditors.
- Issue of 1,200,000 facilitator shares to Xcel Capital Pty Ltd.
- The acquisition remains subject to legal and technical due diligence. Completion of the acquisition and the issue of Aldoro shares to the vendors and facilitators remains subject to shareholder and regulatory approval.
To support the proposed transaction Aldoro will undertake a share placement of $650,000 at $0.15 per share, representing a premium to market bolstering Aldoro’s cash reserves to circa $4,000,000.