Altus Strategies Shares Spike On Deal With Cameroon Partner (ALLISS)

LONDON (Alliance News) - Altus Strategies PLC shares spiked Monday after it announced it sold its ...

Alliance News 11 February, 2019 | 9:32AM
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LONDON (Alliance News) - Altus Strategies PLC shares spiked Monday after it announced it sold its stake in mining licenses in Cameroon to joint venture partner Canyon Resources Ltd.

Shares in the natural resources project development firm were up 19% at 3.50 pence each.

Altus will transfer all of its share capital in subsidiary Aucam Resources Ltd to Canyon. Aucam is the holder of Altus' Birsok and Mandoum licences in central Cameroon. The licences cover the Minim Martap bauxite deposit.

Altus will receive 30 million Canyon shares, valued at about GBP3.4 million, for the termination of the joint venture and the transfer of ownership in Aucam.

Altus also will receive a USD1.50 per tonne royalty on bauxite ore mined and sold from Minim Martap. Australian-listed Canyon had already announced a JORC compliant resource estimate for the Minim Martap project of 550 million tonnes at an average grade of 45.5% total aluminium oxide.

"We are delighted to reach this deal with Canyon which is designed to monetise our bauxite projects in Cameroon. The deal will generate a significant additional shareholding for the company in ASX-listed Canyon which, if fully consummated, is valued at approximately GBP3.4 million based on the current price of Canyon's shares on the ASX," said Chief Executive Officer Steven Poulton.

"Altus strategically acquired a stake in the project in 2010 and entered a joint venture with Canyon in December 2013. Our total expenditure generating the project prior to the JV was less than USD125,000 and this amount was repaid in cash by Canyon. The series of transactions showcases the strategic value of our Africa focused and counter-cyclical project generator business model."

By Paul McGowan; paulmcgowan@alliancenews.com

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Altus Strategies PLC 3.50 GBX 0.00 -
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