Cyprium Metals Ltd has divested the Cue Project in Western Australia to Q Resources Pty Ltd (QR), after the parties inked a binding Sale and Purchase Agreement and Royalty Deed.
The project, in the Murchison Region, has been a non-core asset for Cyprium, and its sale allows the company to further focus on advancing its priority projects.
“We are pleased to have completed the strategic review process commenced in October 2024,” Cyprium executive chair Matt Fifield said.
Exposure to future success
“The structure of the divestments ensures Cyprium shareholders retain exposure to any future exploration success by the new stewards of the Murchison assets,” Fifield said.
In return for the Cue Project, Cyprium will receive from QR:
- a cash payment of A$75,000 upon completion of binding documentation and transfer of the Cue tenements;
- a 1% net smelter royalty (NSR) on future production from the Cue tenements, payable to Cyprium;
- an option for QR to buy back 50% of the royalty for A$500,000 upon a public listing; and
- a 9.9% equity stake in QR upon its public listing.
The transaction marks the conclusion of Cyprium’s strategic review of its copper project portfolio in the Murchison Region of WA, which kicked off on 28 October 28, 2024.
Optimising asset base
The company has been focused on optimising its asset base to support its broader operational and financial objectives, and this sale will allow it to streamline its portfolio and concentrate resources on core copper development projects.
With this agreement, the company retains potential upside through the royalty arrangement and its equity interest in QR, while also strengthening its financial position with an immediate cash injection.
“Divestment of the non-core Meekathara and Cue projects is consistent with Cyprium’s strategy to focus its efforts and capital on development of its core Nifty and Maroochydore projects,” said Fifield.