Astro Resources NL (ASX:ARO) will pick up an 80% stake in the Georgina Basin iron oxide copper-gold (IOCG) project in the Northern Territory from fellow ASX-lister Greenvale Mining NL.
Greenvale said the sale would keep it in step with its renewable energy focus while it passes the Georgina Basin baton to a diversified international explorer.
In exchange for the project, Astro will hand over 1.15 billion ARO shares, representing around 19.7% of the company’s existing issued capital.
The company also has a chance to snap up the remaining 20% for either cash or shares in the two years after this transaction settles.
Greenvale will also hold onto a 2% net smelter royalty so it can profit on any future IOCG production on the Georgina Basin tenement.
As part of the transaction, Greenvale CEO Matthew Healy will become the Astro chief executive, while Greenvale directors Neil Biddle and Tony Leibowitz will join the Astro board.
Astro’s portfolio
Astro’s recent focus has been on developing gold exploration interests in Nevada, which is globally recognised as a “gold hotspot”, having produced more than 215 million ounces since 1835.
The international explorer holds the Needles Gold Project, which is located around 100 kilometres southeast of the 15-million-ounce Kinross Round Mountain open cut gold mine.
Interstingly, Kinross is thought to be one of the world’s largest epithermal, low-sulphidation volcanic-hosted gold deposits.
The Needles Project was historically mined for epithermal gold and silver mineralisation in the early 1900s and subsequent geophysical exploration has identified the potential to host an orebody of similar size and structure to the Round Mountain Deposit.
ARO recently completed a four-hole drill campaign for the Needles project and is currently waiting for the final results from the fourth hole.
Astro has also staked a series of highly prospective lithium brine and clay claims in the Kibby Basin, Nevada, providing a low-cost entry to a high-value commodity in a Tier-1 resource jurisdiction.
The other key area of focus for Astro is the Governor Broome Heavy Mineral Sands Project in WA’s southwest.
Astro recently completed an infill drilling campaign at this project with a view to upgrading the resource category from JORC Inferred to JORC Indicated for the Jack Track tenement.
Once the resource upgrade is complete, Astro hopes to complete a scoping study over the entire project.
The explorer also holds the Lower Smoke Creek Diamond Project, located southwest of Lake Argyle in the Kimberly region of Western Australia. Down the line, it hopes to spin off these assets with a collection of other diamond projects.