- Marquee Resources (MQR) and its joint venture partner, Global Energy Metals (GEMC), are selling the Werner Lake cobalt project in Canada to High-Tech Metals
- High-Tech will buy 100 per cent of the project through a mix of cash and scrip and will separately issue Marquee 300,000 founding shares and 500,000 options
- The sale is conditional on High-Tech listing on the ASX, which it hopes to do by the end of this year after a $4.5 million IPO
- Marquee’s Executive Chair, Charles Thomas, says the transaction allows the company to be part of any potential exploration success without the associated costs and risk
- MQR shares were up 1.67 per cent to trade at 6.1 cents at 12:37 pm AEDT
Marquee Resources (MQR) and its joint venture partner, Global Energy Metals (GEMC), are selling the Werner Lake cobalt project in Canada to High-Tech Metals.
GEMC currently owns the majority 70 per cent stake in the cobalt project, while Marquee owns the remaining 30 per cent interest.
The parties will sell the project to High-Tech Metals, which will pay $50,000 in cash to GEMC and will issue 3.25 million shares to the joint venture companies.
Marquee will also receive 300,000 founding shares and 500,000 options exercisable at 25 cents each ahead of High-Tech listing on the ASX, which it plans to do by the end of this year.
Marquee’s Executive Chair, Charles Thomas, said the agreement allowed the company to monetise a non-core asset.
“The Werner Lake transaction with High-Tech allows the project to move forward whilst MQR maintains exposure to any upside that may be unlocked without the associated costs and risks,” Mr Thomas said.
“We look forward to becoming a shareholder of High-Tech and participating in the potential exploration success of the project through the public entity upon its listing on the ASX.”
High-Tech Metals lodged its prospectus yesterday to raise $4.5 million through an initial public offering (IPO), under which it will issue 22.5 million shares at 20 cents each.
The IPO includes a priority offer of up to 15 million shares to eligible Marquee shareholders in Australia.
HTM Managing Director Sonu Cheema said High-Tech aimed to list on the ASX by the end of 2022.
“The world needs more high-quality cobalt mines, and High-Tech is committed to begin work to realise the potential of Werner Lake in a sustainable and responsible manner to ensure strong outcomes for all stakeholders.”
The sale of the Werner Lake project is subject to High-Tech Metals raising at least $4.5 million through the IPO.
MQR shares were up 1.67 per cent to trade at 6.1 cents at 12:37 pm AEDT.