SIBANYE-Stillwater said it had concluded a deal in which it will allow Aldebaran Resources, a subsidiary of Canada’s Regulus Resources to arm into Altar, a copper/gold project
Sibanye-Stillwater inherited Altar, which is situated in Argentina, from its 2017 takeover of Stillwater Mining.
In addition, Regulus Resources will also spin-out its Rio Grande copper/gold project, and some other properties, into Aldebaran Resources.
The benefit to Sibanye-Stillwater is that it is paid $15m in upfront cash by Aldebaran Resources for the farm-in opportunity and a 19.9% stake in Aldebaran itself. In addition, Aldebaran will finance $30m of exploration and development work once an initial $30m, which has already been arranged in lender finance, has been spent.
“This transaction is consistent with our strategy of maintaining our focus and investment on our core mining operations,” said Neal Froneman, CEO of Sibanye-Stillwater, in a statement when the transaction was first announced in late June.
