Business
NT Minerals Limited - SALE OF REDBANK/WOLLOGORANG COPPER PROJECT
NT Minerals Limited - SALE OF REDBANK/WOLLOGORANG COPPER
About this update from Nt Minerals Limited
[{"type":"text","content":"NT Minerals Limited (ASX: NTM) ('NT Minerals', 'NTM' or 'the Company') is pleased to announce that it has entered into an agreement with Golden Horse Minerals (Northern Territory) Pty Ltd, a wholly owned subsidiary of Golden Horse Minerals Ltd (ASX:GHM) ('GHM') to acquire 100% of the shares in NTM's subsidiaries holding the Redbank and Wollogorang Copper Projects ('Sale Agreement').\nKEY POINTS GHM to acquire 100% of the issued capital of NTM subsidiaries Redbank Operations Pty Ltd and Mangrove Resources Pty Ltd (the 'Subsidiaries'), the holders of the Redbank and Wollogorang Copper Projects respectively, subject to NTM shareholder approval to be sought pursuant to Listing Rule 11.2. Consideration payable by GHM comprises a $1,000,000 cash payment and CHESS Depositary Interests ('CDIs') in GHM to the value of $2,000,000.\nIn September 2024, the Company entered into an exclusive option agreement with GHM over the Redbank and Wollogorang Copper Projects (together, the 'Project') in the Northern Territory (refer to NTM's ASX announcement dated 4 September 2024 titled 'Option Agreement') under which GHM could earn up to a 90% interest in the Project by expending $5.1m on exploration and funding a pre-feasibility study. Whilst this Option Agreement significantly reduced the Company's expenditure commitments, it did not provide any direct funding to NTM. The Project, whilst at advanced exploration stage, requires significant further expenditure over several years before production can be achieved and such expenditure would result in a substantial dilution of the Company's equity. The Company will maintain an indirect interest in the Project through the GHM CDIs issued as part of the consideration. Pursuant to Listing Rules 12.1 and 12.2, NTM is obliged to satisfy ASX on an ongoing basis that its level of operations going forward is sufficient, and its financial condition is adequate to warrant its continued listing and the continued quotation of its securities.\nASX generally continues quotation of an entity's securities for a period of up to six months from the date of a ny agreement to dispose of its main undertaking, being 30 December 2025 in the case of the Sale Agreement. The Company may be suspended six months after the date of the Sale Agreement to complete the disposal if ASX is not satisfied that it has sufficient operations ...