Red Hill Expands Royalty Portfolio with Sandstone Acquisition

April 28, 2025 11:52 PM PDT | By Team Kalkine Media

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Red Hill Expands Royalty Portfolio with Sandstone Acquisition — Image source: shutterstock

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Highlights:

Red Hill Minerals secures a 2% gross revenue royalty over Sandstone Gold Project tenements in Western Australia.

Acquisition aligns with Red Hill's strategy to diversify its royalty portfolio across various commodities and projects.

The agreement includes an upfront payment and deferred contingent payments tied to future production from the tenements.

Red Hill Minerals (ASX:RHI), a company primarily involved in exploration, has entered into a binding heads of agreement to acquire a 2% gross revenue royalty over certain tenements within the Sandstone Gold Project in Western Australia. This acquisition expands the company's royalty portfolio and is part of its broader strategy to diversify its holdings across a range of commodities and projects.

Details of the Agreement

The Sandstone Gold Project tenements are currently part of Brightstar Resources (ASX:BTR) operations, which acquired them through its scheme of arrangement with Alto Metals. This scheme led to Alto Metals being delisted from the Australian Securities Exchange in December 2024. Brightstar has since begun exploration activities on these tenements, with plans for an extensive drilling program in 2025. The exploration includes up to 80,000 meters of drilling, focused on the Sandstone Hub area.

As per the agreement, Red Hill will to the vendors Bruce Legendre and Stephen Stone. Additionally, the deal includes deferred contingent payments, with installments representing 50% of the royalty receipts during the first eight quarters of future production from the tenements.

Strategic Move to Diversify the Portfolio

Joshua Pitt, Executive Chairman of Red Hill, expressed the company’s enthusiasm about this move, emphasizing it as an important step toward diversifying the royalty portfolio. He highlighted the consolidation of the Sandstone tenements by Brightstar following its acquisition of Alto Metals and reiterated the company's confidence in Brightstar’s ability to unlock further value from the Sandstone Project.

Red Hill's Broader Project Portfolio

Red Hill Minerals is an explorer with a diverse portfolio of projects. In addition to the Sandstone royalty, the company holds other significant exploration assets, including the Onslow, Pannawonica, West Pilbara, and Curnamona projects. This strategic acquisition in the Sandstone region further reinforces Red Hill’s commitment to growing its portfolio of royalty interests, contributing to its long-term growth strategy.

This acquisition underscores Red Hill's ongoing effort to expand its portfolio of royalties and exploration assets in the Australian mining sector.

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