Disposal of interest in the Georgina Basin IOCG Project
Released
Released
Announcement PDF
29 January 2024
GREENVALE MONETISES ITS INVESTMENT IN THE
GEORGINA BASIN THROUGH SALE TO ASTUTE
Transaction consolidates ownership of high-potential IOCG district, while allowing
Greenvale to focus on its flagship Alpha Torbanite Project and new helium interest
Highlights
•
Agreement to sell the remaining 20% of the Georgina Basin IOCG
Project in the NT to Astute Metals (ASX: ASE), subject to shareholder
and regulatory approvals.
•
Consideration is 5 million Astute shares with the potential for a further
5 million shares subject to certain milestones being achieved.
•
Following completion of the transaction, Greenvale will increase its
stake in Astute from 11.21% to 12.27%.
•
Greenvale continues to hold a 2% net smelter royalty (NSR) over the
Georgina Project, providing exposure to future upside.
Greenvale Energy Limited (ASX: GRV, “Greenvale” or “the Company”) is pleased to advise
that it has entered into a conditional term sheet for the sale of its 20% shareholding in
Knox Resources Pty Ltd (Knox), the 100% owner of the Georgina Basin Project in the
Northern Territory, to Astute Metals NL (Astute) (ASX: ASE).
The terms of the sale are subject to shareholder approval and regulatory approval. In
consideration for the acquisition, Astute will pay to Greenvale:
1.
On completion, 5,000,000 Astute fully-paid shares (Shares) at a deemed value of
$250,000, based on an issue price of $0.05 per Share.
2.
A further 5,000,000 Shares if, within a period of four years from completion of the
acquisition, one of the following milestones are achieved:
(a)
Via a Discovery, where Discovery is defined as a drill-hole that intersects:
(i)
100m at 1% Copper (Cu), or equivalent where the length multiplied by the
length-weighted average grade in wt% units equals 100, provided a
minimum intersection grade of 1% Cu (e.g. 10m @ 10% Cu, 50m @ 2% Cu); or
(ii)
100m @ 1.3g/t gold (Au), or equivalent where the length multiplied by the
length-weighted average in g/t units equals 130, provided a minimum
intersection grade of 1.3g/t (e.g. 10m @ 13g/t Au, 50m @ 2.6g/t Au); or
(b) a 100% sale of Knox or the Georgina Project to a third party; or
(c) a Mineral Resource Estimate, prepared according to JORC Code guidelines,
where the Mineral Resource is located on any tenement area forming the
Georgina Project, including those currently in application.
REGISTERED OFFICE:
Level 5, Suite 6 189 Kent Street, Sydney, New South Wales 2000 | GPO Box 2733, Sydney NSW 2001
+61 2 8046 2799 | admin@greenvaleenergy.com.au | www.greenvaleenergy.com.au
ABN
54
000
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555
A Deed of Variation of the Option Agreement dated 28 November 2022 entered into
between Astute and Greenvale is to be executed which will confirm the above
consideration, together with the terms and conditions of the transaction, including the
obtaining of shareholder and regulatory approvals.
Following the successful completion of the sale of Knox, Greenvale will increase its stake
in Astute from 11.21% to 12.27%.
The sale of the is considered to be a positive step for Greenvale for the following reasons:
•
Greenvale can deploy its financial resources towards its energy projects and avoid
the possibility of dilution in Knox in the event that it elects not to contribute;
•
It allows Astute to consolidate its ownership of Knox, which will benefit
Greenvale’s substantial shareholding in Astute;
•
The transaction converts Greenvale’s interest in the project from an unlisted to
listed status; and;
•
Greenvale retains a 2% net smelter royalty (NSR) in Georgina Basin and, to the
extent that Astute can create value in the Georgina Basin Project, this will further
enhance the value of this important asset.
Commenting on the transaction, Greenvale Chairman Neil Biddle said: “We are pleased to
consolidate our position in the Georgina Basin through the sale of our 20% shareholding in
Knox to Astute, which will see us increase our stake in Astute to approximately 12%.
This is a sensible rationalisation of 100% of the ownership structure of the Georgina Basin
Project into a listed vehicle, ensuing that Greenvale retains exposure to future exploration
upside as Astute continues to advance this exciting project towards a discovery – both
through our 12% shareholding and 2% NSR over the asset.
This streamlines Greenvale’s business and ensures we can focus our full resources and
attention on commercialising the flagship Alpha Torbanite Project while also bringing our
exciting new helium and hydrogen assets to account over the next 12 months. We are looking
forward to seeing our investment in Astute grow and creating value for our shareholders.”
Authorised for Release
This announcement have been approved by the Board for release.
Contact
For further details, contact:
Mark Turner, CEO, 0459 519 999
Media Inquiries:
Nicholas Read – Read Corporate:
Nicholas@readcorporate.com.au
Mobile: 0419 929 046
GREENVALE
ENERGY
LIMITED
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