Altar copper-gold project agreement on track

By | 2018-10-11T10:24:03+00:00 October 11th, 2018|News|0 Comments

Sibanye-Stillwater is making significant progress with the arrangement agreement to unlock value at its Altar copper-gold project with Regulus Resources and a newly formed subsidiary of Regulus, Aldebaran Resources. 

Altar copper-gold project

Sibanye-Stillwater has made progress on the Altar copper-gold project arrangement agreement. Image credit: Sibanye-Stillwater

Progress includes a 99.8% of votes cast by Regulus shareholders being in favour of the arrangement at its annual and special meeting, as well as obtaining the requisite final court order from the Alberta Court of Queen’s Bench. The closure of the arrangement is subject to the satisfaction of customary closing conditions, including receipt from the TSX Venture Exchange (TSX-V) of conditional listing approval for the Aldebaran shares.

“We are pleased that these significant milestones has been achieved and recognize that it is an important step towards closing the transaction,” comments Sibanye-Stillwater CEO, Neal Froneman.

The arrangement sees Sibanye-Stillwater benefit from upfront proceeds (USD15-million), while retaining a direct interest in the project of either 40% or 20% (should Aldebaran exercise its additional earn in option) as well as an indirect exposure though its 19.9% shareholding in Aldebaran. Sibanye-Stillwater will also gain indirect exposure to the Argentine exploration assets that Aldebaran will be acquiring from Regulus as part of the Arrangement, including the Rio Grande and Aguas Calientes projects, among others.

Closure and implementation of the transaction is dependent on the successful listing of Aldebaran Resources on the TSXV which, subject to regulatory approval by the TSXV, is anticipated to occur during the fourth quarter of 2018.

“The support of the Regulus shareholders demonstrates the value creation that is expected to be realised through the implementation of this transaction, unlocking the upside potential of the Altar Project by providing it with the focus from the experienced Aldebaran team,” Froneman concludes.