Artemis Resources Ltd (ASX:ARV) has increased its liquidity by selling 51% of its interest in the Munni Munni Platinum Group Elements (PGE) Project in the West Pilbara region of WA to Empire Metals Ltd (LON:EEE).
The sale provides Artemis with a GBP25,000 (~A$50,000) option fee and 60 million Empire shares valued at A$1.5 million while also retaining a 19% interest in the project, free-carried until completion of a bankable feasibility study.
This already appears to have been a prudent investment with the stock issued at 1p but Empire closed in London overnight at 1.85p, valuing ARV's stake at approximately A$2.1 million.
It also sees Artemis become the largest shareholder of Empire with 24% of the enlarged share capital of Empire post-transaction.
Managing director Mark Potter said: “The Munni Munni PGE Project was identified by the board as a valuable but non-core asset, given our commitment to Carlow Castle and our Paterson Range tenement that surrounds Havieron.
“With PGE metals currently buoyant and with supply-side disruptions, we have an optimistic outlook for PGE metals longer term."
Revenue from the sale to Empire and its partner Almeera Ventures Ltd increases the liquidity of Artemis with total group cash and tradable securities now in excess of A$8 million.
The sale provides a pathway for rapid progression of the Munni Munni project, Australia’s largest-ever published PGE resource, while Artemis retains direct and indirect project exposure without the requirement to contribute further funding.
It also allows Artemis to allocated further financial and management resources to focus on the advancement of the Carlow Castle and Paterson Central copper-gold projects.
Potter said: “We have executed this deal with Empire as it allows for a dedicated and highly experienced project development team to drive Munni Munni forwards at pace whilst allowing us to retain significant exposure to the project through our direct and indirect holdings.
“This transaction also substantially reduces our overall tenement holding costs.
“We look forward to working with the Empire team to advance the Munni Muni project.”
Artemis retains the right to appoint a director to the board of Empire, provided it retains a minimum shareholding of 15% of the issued share capital.
The Munni Munni project is a joint venture between Artemis (70%) and Platina Resources Limited (ASX:PGM) (30%) and on completion of the transaction, Empire will hold 41%, Platina 30%, Artemis 19% and Almeera 10%.
Empire will have a Right of First Refusal for the acquisition of the remaining interest held by Artemis and Almeera in the project, allowing Empire to move to 70%.