- Minotaur Exploration (MEP) is set to offload its Highlands copper-gold tenements, which sit 50 kilometres north-east of Mt Isa, Queensland
- The company first acquired the tenements in 2018 and carried out ground geophysical surveys and some drilling, but without huge success
- Minotaur has now signed a binding terms sheet with private company Larvotto Resources for the tenements, for a non-refundable $25,000 fee
- Larvotto is looking to list on the ASX in early 2021, and would like to have Highlands on its books when it makes its initial public offering (IPO)
- If Larvotto goes ahead with the IPO by the end of June, Minotaur will take another $100,000 in cash and $500,000 in Larvotto shares upon listing
- Minotaur will also retain a one per cent net smelter royalty on production from Highlands
- Minotaur Exploration closed Tuesday’s session 3.23 per cent lower at 15 cents.
Minotaur Exploration (MEP) is set to offload its Highlands copper-gold tenements, which sit 50 kilometres north-east of Mt Isa, Queensland.
Non-core assets
Minotaur first acquired the tenements in 2018 and carried out ground geophysical surveys and some drilling, but without huge success.
The company now views the holdings as “low priority and non-core.”
Minotaur has now signed a binding terms sheet with private company Larvotto Resources for the prospective tenements.
Larvotto is looking to list on the ASX in early 2021, and would like to have Highlands on its books when it makes its initial public offering (IPO).
A non-refundable fee of $25,000 has been paid to secure an exclusive option on the tenements until the end of June 2021.
If Larvotto goes ahead with the IPO by that date, Minotaur will take another $100,000 in cash and $500,000 in Larvotto shares upon listing.
The IPO shares issued to Minotaur will be subject escrow as per ASX requirements.
Minotaur will also retain a one per cent net smelter royalty on production from Highlands.
Next steps
Larvotto still has a fair bit of legwork ahead to get the IPO off the ground, and a lot will be hingeing on results from Highlands while the company does its due diligence.
If for some reason the deal falls through, Minotaur will at least have banked $25,000. If it goes ahead, the company will have retained a significant enough interest in the tenements to ensure future revenues.
Minotaur will be hoping Larvotto goes ahead with its IPO and keeps its share price up to guarantee the full dollar value of the deal is retained.
Having paid $125,000 cash and $275,000 in shares for the Highlands acquisition in the first place, plus subsequent exploration costs, Minotaur will be hoping the divestment of the non-core asset doesn’t end up on the red side of the ledger.
Minotaur Exploration closed Tuesday’s session 3.23 per cent lower at 15 cents.