Buxton Resources Limited (ASX:BUX, FRA:3B4) will sell its remaining 49% interest in the Copper Wolf joint venture in Arizona to IGO for about A$6.15 million in cash, in a move the company says will strengthen its balance sheet and give it greater flexibility across its US copper portfolio.
Under the binding asset sale agreement, IGO will take full ownership and operational control of the former JV area once the deal completes, while Buxton will exit the project with cash of about A$6.15 million, made up of A$5.91 million plus US$168,000. The existing farm-in and joint venture agreement will also be terminated.
Copper Wolf Project showing the current ~12.5 km2 BUX / IGO JV (dark blue) and surface parcel subject to the Asset Sale agreement. Buxton will retain ~30.5 km2 area (pale orange & magenta) wherein, upon completion, Buxton will have an unencumbered interest in its tenement portfolio.
Sale delivers cash and strategic flexibility
The transaction is significant for Buxton not only because of the sale price, but also because it removes future obligations tied to the JV ground, including rehabilitation and make-good liabilities, subject to completion. The company said it will retain a 100% unencumbered interest in about 30.5km² of surrounding Arizona tenure, preserving exposure to exploration upside at its Wolverine, Sun Devil and Aztecs targets.
Just as importantly, IGO has agreed to surrender its right of first refusal over Buxton’s Arizona copper projects. That change gives Buxton greater freedom to advance, fund, joint venture or transact on those projects without restrictions previously attached to the 2022 agreement.
Managing director Martin Moloney described the deal as transformational.
"We are crystallising A$6.15 million from an asset acquired for pegging costs, while retaining 100% ownership of 30.5 km2 of highly prospective ground in Arizona's world-class porphyry copper belt.
"Equally important is the termination of IGO's Right of First Refusal contained in the Copper Wolf Joint Venture Agreement. This restores our strategic agility, allowing us to acquire, advance or transact on our Arizona projects with total autonomy.
"With the Wolverine, Sun Devil, and Aztecs targets representing genuine discovery opportunities, we look forward to progressing these while leveraging our generative pipeline to acquire new projects, all backed by a materially stronger balance sheet."
The deal remains subject to standard conditions including shareholder approval and an independent expert’s report stating whether the transaction is fair and reasonable to shareholders.
Completion is expected within 15 business days of all conditions being satisfied.