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Renegade Exploration (ASX:RNX) cracks strategic divestment deal for Yandal Project

Summary

  • RNX has cracked another strategic transaction in relation to its Yandal Project.
  • The strategic divestment of the project establishes large strategic landholding with over 100km of prospective mineralised strike.
  • The acquisition of the Yandal JV interest from RNX is expected to complete within the next 30 days.

Minerals explorer and developer Renegade Exploration Limited (ASX:RNX) looks to deliver value for its shareholders by actively engaging in the identification, acquisition as well as the development of potent mineral deposits.

In the near term, RNX had offloaded its Yukon Base Metal Project and acquired an interest in the Carpentaria Joint Venture.

Once again, RNX has reached another significant milestone. The company has entered into a strategic transaction with Strickland Metals Limited (ASX:STK) concerning its Yandal East Project.

DID YOU READ: Renegade Exploration Limited’s (ASX:RNX) strategy in focus amid recent developments

As a result of the announcement, the RNX stock increased by 33.333% in the early trading hours on 09 June 2021 at around 10:39 AM AEST, whereas it ended the day’s trade at AU$ 0.006, up by 8.333%.

Strategic divestment of Yandal Project

In the latest feat, RNX has inked an agreement in relation to the divestment of the Yandal East Project to STK in exchange for cash, shares, and a net smelter royalty. As a result, Strickland shall take over the operatorship of the present Yandal Project Joint Venture with Zebina Minerals Pty Ltd.

Strickland and Renegade Tenement Location Map (Source: RNX Announcement 09/06/2021)

Moreover, STK shares issued as part of purchase consideration indicate that RNX preserves an indirect interest in any upcoming exploration success.

DID YOU READ: Back to Back Acquisition Agreements Fuelling ASX:RNX’s Evolution Into Mid-Tier Resource Company

The total purchase consideration for acquiring the Yandal JV interest from RNX includes the following:

  • STK shall pay AU$400,000 upon completion of the acquisition.
  • An additional payment of AU$400,000 by STK on the 6-month anniversary of completion.
  • Issue of 40 million STK shares to RNX on completion, subject to 12 months voluntary escrow.
  • A 0.5% net smelter royalty shall be granted to RNX over the current RNX-Zebina joint venture tenement area.

Besides the consideration, the acquisition remains subject to obtaining all and any regulatory requirements concerning the acquisition process.

ACQUISITION UPDATE: Renegade Exploration (ASX:RNX) gets green signal for CJV interest acquisition 

Strategic rationale behind the acquisition

RNX believes that the transaction is highly strategic for both the parties to the agreement as it establishes a substantial area of interest across the Yandal belt.

STK has planned to execute exploration at the project area and looks forward to kicking off large campaigns in the next quarter.

STK is a mineral exploration company and owns a world-class and highly prospective package of tenements to the north of the present RNX joint venture Yandal Project.

MARCH QUARTER UPDATE: Substantial exploration and acquisition fuel growth of Renegade Exploration (ASX:RNX)

Source: Copyright © 2021 Kalkine Media

The two project areas, when combined, expand the exposure to around 100km of the substantial controlling feature in the region, the Celia Shear, which accommodates multiple present prospects.

STK is backed by an experienced geology team and is suitably poised and financed to take forward the work initiated by RNX across the Yandal Project. Moreover, STK has the opportunity to leverage off the infrastructure and relationships created by RNX.

LATEST RESULTS: Promising rock chip sampling results boost Renegade Exploration’s hopes at Yandal East  

Both RNX and STK are looking to expedite the acquisition and are moving to finalise formal documentation in anticipation to conclude the acquisition within a months’ time.

At 12:08 PM AEST, RNX traded at AU$0.006.

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