Breakthrough Minerals fixes gaze on North Queensland copper-gold with proposed Errolls share deal

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The proposed deal would retain exposure to future exploration upside across a consolidated position in the Barrambie Greenstone Belt ... Read More The post Breakthrough Minerals…

Eyes on the prize: Breakthrough is turning its attention to North Queensland copper-gold. Pic: Getty Images

Special Report: Breakthrough Minerals has agreed to sell its non-core Errolls gold project for shares with a deemed value of $1.2 million as it concentrates on North Queensland copper-gold.

The binding term sheet provides for Xenora Minerals to acquire Errolls Exploration, the subsidiary holding the project in the east Murchison region of WA, in exchange for six million shares at a deemed issue price of 20c each.

Breakthrough intends to seek approval to distribute those shares to eligible shareholders, giving them potential continued exposure to Errolls while the company concentrates on its Queensland portfolio.

The proposed sale and distribution remain subject to completion and approvals. Breakthrough Minerals (ASX:BTM) has not set a distribution record date, and the consideration shares would carry 12-month voluntary escrow from issue, including any balance of that period after distribution.

“The proposed transaction is a strong outcome for BTM and our shareholders,” managing director and CEO Nigel Broomham said.

“The transaction recognises $1.2 million of value for Errolls while preserving substantial exposure to future exploration upside across XRA’s consolidated position in the Barrambie Greenstone Belt.”

Errolls lies about 90km southeast of Meekatharra and Xenora’s proposed acquisition of a 90% interest in neighbouring Limestone Well would combine with Errolls to create an approximately 115km2 position in the Barrambie Greenstone Belt.

Completion of the Errolls sale depends on Xenora’s due diligence, relevant Limestone Well transaction conditions and necessary shareholder and regulatory approvals.

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