Investigator Resources Sells Stake in Mount Sainthill to Tivan Limited
IVR (IVR) Share Update November 2024 Wednesday 20th
Investigator Resources Sells 30% of Mount Sainthill for $1.075M
Investigator Resources Limited (ASX: IVR) has announced a significant transaction involving the sale of approximately 30% of its Mount Sainthill Exploration License to Tivan Limited (ASX: TVN) for a total consideration of $1.075 million.
Instant Summary:
- Sale of ~30% of Mount Sainthill EL to Tivan Limited for $1.075 million.
- Investigator to receive $400k cash upon signing the binding term sheet.
- Additional payments upon tenement transfer, resource estimate, and production milestones.
- Agreement includes reciprocal exploration rights for other minerals.
- Thor Energy Plc to receive part of the consideration.
Transaction Details
Investigator Resources Limited has entered into a binding agreement with Tivan Limited to sell a subdivided portion of the Mount Sainthill Exploration License. The sale includes the Oorabra Mining Leases and is valued at $1.075 million. This deal is structured around several key milestones, including the execution of the sale agreement, formal registration of the new tenement, declaration of a JORC-compliant resource, and commencement of fluorite production.
Investigator will receive an initial $400,000 in cash upon signing the binding term sheet. Further payments will be made as the project progresses, with Tivan expected to formalize the tenement transfer by early 2025. The agreement also recognizes Thor Energy Plc's residual ownership, with a portion of the consideration allocated to them.
Strategic Implications
This transaction allows Investigator to focus on its core exploration objectives while enabling Tivan to maximize the fluorite potential in the region. The agreement includes a Mineral Sharing Agreement, granting Investigator the right to explore for all minerals except fluorite on the divested land, while Tivan can explore for fluorite within a designated area of the remaining Mount Sainthill EL.
Importantly, the subdivision does not affect the Molyhil Tungsten Project, ensuring that Investigator's ongoing and future exploration activities in that area remain uninterrupted.
This sale provides Investigator with immediate capital to further its exploration projects while maintaining a strategic interest in the Mount Sainthill area. For Tivan, this acquisition strengthens their fluorite portfolio and aligns with their strategic goals in the Northern Territory. The transaction is likely to have a positive impact on both companies' stock prices as it reflects a clear strategic direction and collaboration.
Investor Reaction:
Analysts are likely to view this transaction favorably as it provides Investigator with the liquidity to pursue other opportunities while allowing Tivan to expand its fluorite resources. The agreement demonstrates a strategic alignment between the two companies, which could be seen as a positive development by investors.
Conclusion:
Investors should consider the strategic benefits of this transaction for both Investigator and Tivan. This agreement not only provides immediate financial benefits but also strengthens both companies' positions in their respective markets. Investors are encouraged to monitor further developments as the transaction progresses through its various milestones.