# Altus Strategies Plc to Vend Bauxite JV to Canyon for Equity and Royalty

- Link: https://www.directorstalkinterviews.com/altus-strategies-plc-to-vend-bauxite-jv-to-canyon-for-equity-and-royalty/412759772
- Published: 2018-10-11T07:19:18+01:00
- Author: Giles Arbor

**Altus Strategies Plc** (LON:ALS & TSX-V:ALTS), the Africa focused exploration 
project generator, announced today that it signed a Letter of Intent with ASX listed
Canyon Resources Ltd on 10 October 2018, to terminate its existing bauxite Joint
Venture Agreement with Canyon and to transfer to Canyon a 100% interest in the Company’s
Birsok and Mandoum licences. Under the terms of the LoI Altus will receive up to
30M new shares in Canyon and a royalty of US$1.5/t on ore mined and sold from the
Birsok project. The Birsok project is located in central Cameroon and is contiguous
with exploration licences covering the potentially substantial Minim Martap bauxite
deposit which is owned by Canyon.

**Highlights:**

· Altus to receive up to 30M Canyon shares and a US$1.5/t royalty on the Birsok 
project

· Canyon trading at A$0.19 (approximately £0.10) per share

· Altus currently holds 8M Canyon shares from existing joint venture

· Canyon recently announced a JORC (2012) compliant resource at Minim Martap of 
550MT at an average grade of 45.5% total Al2O3 and total 2.06% SiO2, comprising:

o Indicated 88MT averaging 41.8% Al2O3 and 1.3% SiO2

o Inferred 466MT averaging 46.2% Al2O3 and 2.2% SiO2

· Birsok shares a number of bauxite plateaux with Minim Martap

· Birsok is located less than 10km from a rail line that runs to the port

· JVA to be cancelled and Birsok project to be transferred to Canyon

**Steven Poulton, Chief Executive of Altus Strategies Plc, commented:**

“Under this deal Altus will receive up to 30M Canyon shares plus a US$1.5/t royalty
on our Birsok bauxite project, in return for the termination of the current joint
venture agreement and transfer of a 100% interest in Birsok to Canyon. When combined
with our existing holding of 8M shares, our combined holding of 38M Canyon shares,
would have a notional current market value of approximately £3.9M / C$6.6M / A$7.2M.

“Bauxite is the primary ore of aluminium, a lightweight metal which has substantial
applications in the global drive for increased energy-efficiency. The Minim Martap
and Birsok projects are potentially very substantial, having high grades, low impurities
and being strategically located adjacent to an operating rail line that runs to 
the coast. We believe that significant potential exists for Canyon to fast track
the mining and export of a premium grade bauxite product.

“Our agreement with Canyon further validates our project generator business model,
generating returns from exploration, while growing a portfolio of potential high
value royalty income streams. We look forward to updating shareholders on this transaction
in due course.”

**Terms of LoI**

Part A: In lieu of the termination of the JVA, Canyon will issue to Altus:

– 15,000,000 ordinary free trading Canyon shares (the “Initial Shares”)

– 10,000,000 ordinary escrowed Canyon shares, to be issued 12 months following the
Initial Shares and subject to a 12 month voluntary escrow

Part B: In lieu of the transfer of the Birsok project:

– 5,000,000 ordinary escrowed Canyon shares, to be issued upon the execution of 
a mining convention on the Minim Martap project and subject to a 12 month voluntary
escrow

– a US$1.50 per tonne royalty on ore mined and sold from the Birsok project

The issue of shares by Canyon to Altus will be subject to final documentation, the
termination of the JVA, the transfer of the Birsok project and any regulatory or
other approvals as may be required. Completion of the transaction is expected to
occur by the end of this year.

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