- Archer Materials (AXE) has sold two Eyre Peninsula tenements to private company Baudin Minerals for $2 million
- Additionally, a bonus share payment will be made when the buyer lists on a stock exchange
- The funds from the purchase will be put towards Archer’s materials technology development
- Archer says the sale fits with its strategy of earning revenue from non-core mineral exploration assets to fund and grow its advanced materials business
- On the market this morning, Archer is up 0.95 per cent and is trading at 53 cents each
Archer Materials (AXE) has sold two of its Eyre Peninsula tenements for $2 million to private company Baudin Minerals.
Under the sale agreement, a bonus share payment will be made when the buyer lists on a stock exchange and Archer will be granted a 2 per cent net smelter royalty.
Additionally, Archer will keep the rights to explore and mine graphite on the tenements.
The company says the sale is in line with its strategy of earning revenue from its non-core mineral exploration assets to fund and grow its advanced materials business.
The funds from the purchase will be put towards Archer’s materials technology development, focused on the CQ quantum computing chip and A1 Biochip.
Earlier this month, Archer announced it is teaming up with leading artificial intelligence (AI) and machine learning company Max Kelson to develop quantum algorithms.
The algorithms will be for the CQ quantum computing processor chip. This chip is a world-first quantum processor technology that Archer aims to build for quantum computing.
“We believe this is a good deal for our shareholders. The proceeds from the sale of the tenements will assist in the funding of our tech-related activities,” Chairman Greg English said.
“In addition to the upfront payment at completion, Archer will also receive royalty payments should the buyer discover minerals and commence mining on the Tenements. The royalty would allow the company to financially benefit from any future development of these projects,” he added.
On the market this morning, Archer is up 0.95 per cent and is trading at 53 cents each at 10:56 am AEDT.