Aldebaran Signs Option to Joint Venture Agreement with Nuton Holdings Ltd. (a Rio Tinto Venture) for the Altar Project in San Juan, Argentina
VANCOUVER, British Columbia, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Aldebaran Resources Inc. ("Aldebaran" or the "Company") (TSXV:ALDE, OTCQX:ADBRF) is pleased to announce that it has entered into an option to joint venture agreement (the "Option Agreement") with Nuton Holdings Ltd. ("Nuton"), a Rio Tinto venture, whereby Nuton can acquire a 20% indirect interest in the Altar project by making staged payments totaling US$250 Million.
Highlights
Non-dilutive financing with an upfront payment of US$10 M
US$20 M projected for Q4-2024 after the publication of an updated mineral resource estimate, if Nuton elects to proceed
US$30 M payment projected for Q2/Q3-2025 after the publication of a Preliminary Economic Assessment ("PEA") that includes a Nuton case, if Nuton elects to proceed
Final Payment of US$190 M would be made after the publication of a Pre-Feasibility Study ("PFS") that includes a Nuton case, expected in 2026, if Nuton elects to exercise the option
Aldebaran is collaborating with Nuton to evaluate a NutonTM Technologies sulphide leaching option in the upcoming PEA and PFS
Nuton's sulphide leaching technologies have the potential to materially improve the economics of the project
Aldebaran remains the operator of the Altar project
John Black, Chief Executive Officer of Aldebaran, commented: "We're pleased to have entered into this agreement with Nuton. This deal has many benefits to Aldebaran shareholders in that it provides for non-dilutive capital injections to fund future work programs on the Altar project through to completion of a PFS, if Nuton proceeds through each milestone. As well, Nuton's proprietary sulphide leaching technologies could add significant value to the Altar project by reducing the costs and capital required for development. Our current plan for the PEA and PFS is to show both Nuton and non-Nuton cases."
Adam Burley, Chief Executive Officer of Nuton, commented: "We're pleased to enter into this agreement with Aldebaran, which provides us with an option to acquire an interest in a very large copper project in Altar. Successful deployment of Nuton Technologies at Altar has the potential to materially enhance the economic and environmental performance of the project."
Status of Earn-In Agreement with Sibanye-Stillwater
The Altar project is owned by Peregrine Metals Ltd. ("Peregrine"), a private Canadian incorporated company. Aldebaran currently owns a 60% interest in Peregrine. In August 2023, the Company informed Sibanye-Stillwater that it had met its commitments to complete the acquisition of an additional 20% interest in Peregrine from Sibanye-Stillwater (see Company news release dated August 14, 2023). The process of finalizing the additional acquisition is ongoing and an official announcement is expected in Q4 of this year. Upon finalizing the acquisition, Aldebaran will hold an 80% interest in Peregrine, with Sibanye-Stillwater holding the remaining 20%. Both Aldebaran and Sibanye-Stillwater will need to fund future work programs based on their equity interest in Peregrine.
Transaction Details
Aldebaran has entered into an Option to Joint Venture Agreement with Nuton, whereby Nuton has the exclusive right to acquire a 20% interest in Peregrine in exchange for the following payments:
US$10 Million upon signing ("Signing Payment")
US$20 Million upon delivery of an updated mineral resource estimate ("MRE Payment")
Mineral resource estimate expected to be completed in November 2024
US$30 Million upon delivery of a Preliminary Economic Assessment ("PEA Payment")
PEA expected to be completed in Q2-2025
US$190 Million upon delivery of a Pre-Feasibility Study ("PFS Payment")
PFS expected to be completed in 2026
The payments by Nuton will be made as follows: 90% will be paid directly to Peregrine and 10% will be paid directly to Aldebaran, as directed by Peregrine. The payments made to Peregrine will be utilized to fund Aldebaran's portion of ongoing and future work programs at Altar.
Upon completion of the PFS Payment, Nuton will acquire a 20% interest in Peregrine and have a 20% indirect interest in the Altar project. Altar would then be owned as follows: Aldebaran 60%, Sibanye-Stillwater 20%, and Nuton 20%, with Aldebaran operating the project.
If Nuton elects not to proceed after the issuance of the MRE, PEA or PFS, the Option Agreement will be terminated, Aldebaran will retain its 80% interest in the project, and Aldebaran and Peregrine will retain any cash payments made prior to the termination unless there is an uncured material breach of the agreement by Aldebaran or Peregrine.
Nuton and Aldebaran have agreed to a work program for the 2024/2025 field season to ensure that Nuton's proprietary sulphide leaching technology can ...
