Metal Bank (ASX:MBK) options Triumph project to private buyer

• Metal Bank’s (MBK) subsidiary, Roar Resources, has signed an agreement to option its Triumph project in southeast Queensland to a private buyer
• The buyer is expected to acquire the project for a total consideration of $6.4 million and grant a one per cent net smelter royalty to Roar Resources
• Following the settlement, the buyer will be responsible for all liabilities associated with the Triumph project
• The proceeds will allow Metal Bank to focus on exploration activities at its 8 Mile and Eidsvold projects
• Metal Bank shares are grey today, trading just shy of one cent per share

Metal Bank’s (MBK) subsidiary, Roar Resources, has signed an agreement to option its Triumph project in southeast Queensland to a private buyer.

Under the terms of the deal, the unnamed buyer will acquire the project for a potential cash consideration of $6.4 million, and will grant a net smelter royalty of one per cent to Roar Resources.

The cash component will be comprised of an initial $400,000, which will be paid upon closing. A further $1.5 million, $2 million and $2.5 million will also be paid upon the discovery of a 500,000, one million and two million-ounce resource estimate respectively. These resource estimates will be calculated on a gold-equivalent basis.

Following the completion of the sale, the buyer will be entirely responsible for all liabilities related to the Triumph tenements, including environmental liabilities associated with ongoing activity at the site. This is expected to save Metal Bank an annual holding fee of roughly $200,000.

Metal Bank, since 2018, has been on the lookout for a joint venture partner at the Triumph project to fund exploration activities at its other properties. With such an agreement now in place, the company will have a greater level of liquidity to pursue operations at the 8 Mile and Eidsvold projects.

Inés Scotland, Executive Chair of Metal Bank, said she is pleased to have secured a sale of the Triumph project.

“In Queensland, MBK is now focused on the exploration of its 8 Mile project, which has a robust shallow Exploration Target supported by recent drilling with the added potential for a bulk tonnage target to the west of the Exploration Target,” she said.

Metal Bank shares are grey today, trading for 0.9 cents per share at 10:58 am AEST.