Altus Strategies signs deal with Raptor Resources

The AIM-traded firm said it would receive equity in Raptor, with an initial cash payment and a net smelter return royalty.

It was intended for Raptor to list its shares on the Australian Stock Exchange, with the agreement remaining subject to conditions precedent, final documentation and regulatory approval.

Altus said it would remain the operator during the initial earn-in period.

“Our letter of intent with Raptor is in line with the company's strategy of making and monetising discoveries in Africa, while building a valuable portfolio of royalty interests,” said Altus chief executive Steven Poulton.

“Raptor will have the option to acquire up to a 100% interest in our Morocco-focussed exploration subsidiary, which is currently advancing four copper and other base metal projects.

“In return Altus will receive an upfront cash payment, equity in Raptor and a royalty on the initial projects vended-in.”

Poulton said the deal remained subject to final documentation and fulfilment of a number of conditions by Raptor, including the intended listing of Raptor's shares on the ASX by 31 December.

“On completion of the proposed deal, this will mark our third transaction with an ASX-listed company, which include a joint venture on an Altus gold exploration project in southern Mali with Resolute Mining and a joint venture on an Altus bauxite exploration project in Cameroon with Canyon Resources.

“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 eight million shares in Canyon, which have a current market value of approximately £1.2m.”