Investigator Resources Limited (ASX:IVR) Confirms Sale of Stuart Shelf JV
Sale Completion
Investigator Resources Limited (ASX: IVR) has successfully completed the sale and transfer of its Joint Venture interest and adjacent tenements in the Stuart Shelf, South Australia, to Discover Co. The transaction was officially finalised after the South Australian Department for Energy and Mining approved the transfer of tenements.
Financial Highlights
As part of the agreement, Investigator will receive $1 million in cash before the end of the year. This cash inflow aims to support ongoing exploration activities targeting silver and gold, while alleviating a substantial expenditure commitment associated with the non-core Stuart Shelf tenements. Future royalty earnings are also included in the deal. Andrew McIlwain, Managing Director of Investigator, commented, “Continued exposure to exploration success on these tenements is retained with a 1% royalty over the JV tenements and a 0.5% royalty over the ‘Lake McFarlane’ tenements.”
Details of the Agreement
The Sale Agreement executed by Investigator’s subsidiary, Gawler Resources Pty Ltd, details the transfer of Investigator’s 49% interest in various Joint Venture tenements along with full ownership of the Lake McFarlane tenements. Two types of Net Smelter Royalties (NSRs) have been structured in the deal: 1% for the Joint Venture tenements and 0.5% for the Lake McFarlane tenements. Furthermore, Investigator will receive a refund of approximately $16,000 for pre-paid tenement rents.
Future Options
Pernatty Co Pty Ltd, as part of the deal, has an option to acquire the NSRs at a future date should a decision to mine be made on any of the tenements. They will also have the right to acquire the NSRs at the price offered by any third-party buyer, should Investigator choose to sell them.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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