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Antipa Minerals Ltd (ASX:AZY) is ending the week on a high note, with its shares surging 14% to 1.6 cents in morning trade. This positive movement comes on the back of a significant announcement: Antipa has secured an AU$17 million deal with Rio Tinto Ltd (ASX:RIO).
The deal involves Antipa agreeing to sell its 32% non-controlling interest in the Citadel Joint Venture Project to Rio Tinto Exploration. The sale will see Rio Tinto pay a total of AU$17 million in cash for Antipa’s stake. This move is a key development for the Paterson Province-based mineral exploration company, which has seen a notable boost in investor interest following the news.
The Citadel Joint Venture, established in 2015 between Rio Tinto Exploration and Antipa, covers 1,200 square kilometers in the Paterson Province of Western Australia. The project is known for its significant Mineral Resource Estimate (MRE) across its Calibre and Magnum deposits. The MRE totals 127 million tonnes containing 2.84 million ounces of gold at 0.71 grams per tonne, 173,000 tonnes of copper at 0.13%, and 2.1 million ounces of silver at 2.1 grams per tonne.
The proceeds from this transaction will substantially enhance Antipa’s cash reserves, bringing them to approximately AU$23 million. This financial boost will enable Antipa to further explore and advance its wholly owned Minyari Dome Gold-Copper Project in Western Australia.
The formal sale agreement and necessary deeds with the relevant Native Title parties are yet to be completed, with the transaction expected to close by November if everything proceeds as planned.
While parting with a stake in the Citadel Joint Venture might seem like a significant move, Antipa's management views it as a strategic decision. Managing Director Roger Mason expressed his satisfaction with the deal, noting that the sale of the non-core asset will provide a solid financial foundation for accelerating the development of the flagship Minyari Dome Project. He highlighted that Rio Tinto was the natural buyer for Citadel and that the AU$17 million cash consideration reflects the current value of the asset.
Antipa’s team is already busy updating the existing Minyari deposit Mineral Resource and preparing a maiden Mineral Resource for GEO-01. These efforts are expected to contribute to a revised Minyari Dome Scoping Study. Investors and stakeholders can anticipate updates on these advancements in the coming weeks.
