AUS
NZ
UK
CA
USA
IND
Highlights:
- $1M Cash Payment: Investigator will receive $1 million cash prior to the end of the year following the completion of the sale.
- Future Royalties: Investigator retains a 1% NSR on the Joint Venture tenements and a 0.5% NSR on the Lake McFarlane tenements, providing long-term revenue potential.
- Royalty Buy-Back Option: Pernatty has the option to acquire the royalties at an agreed or independently determined price in the future, providing flexibility for both parties.
Investigator Resources Limited (ASX:IVR) has successfully completed the sale and transfer of its Joint Venture interest and adjacent tenements in the Stuart Shelf, located in South Australia. The transaction, finalized with Pernatty Co Pty Ltd (a subsidiary of Discover Co Pty Ltd), marks a significant milestone for the company, with key financial and royalty terms established as part of the agreement.
Sale Agreement Details
As previously announced on 16 September 2024, Investigator’s subsidiary, Gawler Resources Pty Ltd, entered into a Sale Agreement with Pernatty Co to transfer Investigator’s 49% interest in the Joint Venture tenements (ELs 6402, 6640, 6641, 6642, and 6643) and its 100% owned Lake McFarlane tenements (ELs 6754, 6853, 6858, 6909, and 6981). With the transfer of the tenement interests officially completed and registered by the South Australian regulator, Investigator is set to receive $1 million in cash before the end of the year.
In addition to the cash payment, a Royalty Deed has been executed, entitling Investigator to future royalties from mineral production from the tenements. The terms of the royalty are as follows:
- 1% Net Smelter Royalty (NSR) for all mineral production from the Joint Venture tenements.
- 0.5% NSR for all mineral production from the Lake McFarlane tenements.
- Refund of approximately $16,000 for prepaid tenement rents.
Furthermore, Pernatty has a once-off option to acquire the NSRs at an agreed price or through an independent expert’s valuation if a decision to mine is made on any of the tenements. If Investigator decides to sell the NSRs to a third party in the future, Pernatty will have a right of first refusal, allowing them to acquire the royalties at the price offered by a third-party buyer within 30 days.
Investigator’s share price saw an 11.8% increase to 1.9 cents per share as of 24 December 2024, reflecting positive market reaction to the completion of this transaction.
