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Altus sells out of bauxite JV

Project generator Altus Strategies (AIM:ALS) has generated itself a return by agreeing to sell off its 50% stake in the Birsok bauxite project for £3 million (US$3.96 million) in shares and a $1.50 per tonne royalty.
Altus sells out of bauxite JV Altus sells out of bauxite JV Altus sells out of bauxite JV Altus sells out of bauxite JV Altus sells out of bauxite JV

Altus says the Birsok greenery is hiding some strong bauxite mineralisation

Staff reporter

Buyer Canyon Resources (ASX:CAY) is the existing joint venture partner on the Cameroonian project.

Altus' company strategy is to develop early stage projects, put them into joint ventures and then exit for a profit.

CEO Steve Poulton said this deal showed the strategy had legs.

"Our agreement with Canyon further validates our project generator business model, generating returns from exploration, while growing a portfolio of potential high value royalty income streams," he said.

Altus did not give a deadline on the letter of intent being turned into a sale, but said it would likely be done by the end of the year.

The company flagged the Birsok deal last month, after saying it had "delineated a number of high grade bauxite plateaux with results including 48.8% Al over 6m".

It will not be handed the shares immediately after confirming the end of the JV: 15 million shares will be handed over first, 10 million will be placed in escrow for 12 months a year after the deal is signed, and another 5 million shares will be issued "upon the execution of a mining convention on the Minim Martap project". 

Canyon also has the Minim Martap project next door, which has a resource of 550 million tonnes at 45.5% total Al2O3.

Altus also has a letter of intent for the sale of its four Moroccan projects with Raptor Resources, an Australian company hoping to soon list on the ASX.