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ProActive Investors - Antipa Minerals to sell Citadel interest for $17 million to focus on Minyari MRE and scoping study

Antipa Minerals Ltd (ASX: AZY) will bank around $17 million after it agreed to binding terms for the sale of some 32% of its non-controlling interest in the Citadel Joint Venture Project to joint venture partner Rio Tinto Exploration. 

Following the sale, Antipa will have around $23 million to advance its 100%-owned Minyari Dome Gold-Copper Project in the Paterson Province of Western Australia, which includes drilling programs and development appraisal-related workstreams.

The Citadel Joint Venture, established in 2015, covers 1,200 square kilometres in the Paterson Province and contains a mineral resource estimate (MRE) across its Calibre and Magnum deposits, which collectively hold 127 million tonnes of resources. This includes 2.84 million ounces of gold at 0.71 g/t, 173,000 tonnes of copper at 0.13%, and 2.1 million ounces of silver at 2.1 g/t.

Since the project began, Rio Tinto has invested over A$47 million in exploration to secure a 68% interest in the joint venture. Over the past two years, Antipa used the dilute-down provisions of the joint venture agreement to cover its share of exploration costs, which has led to a reduction in its interest from 35% to 32%.

"We are very pleased to have signed a binding term sheet with long-standing Citadel joint venture partner, Rio Tinto. The sale of our minority, non-controlling interest in the Citadel Project, which was a non-core asset for Antipa, liberates cash, providing an extremely solid financial foundation from which to accelerate the development of our flagship, wholly-owned Minyari Dome Project,” Antipa managing director Roger Mason, said.

“Rio Tinto was the natural buyer for Citadel, and the A$17 million all-cash consideration fully reflects the current value of our interest in the asset, positioning us to focus on unlocking the full potential at Minyari Dome.

"Our team is busy finalising an update to the existing Minyari deposit Mineral Resource including simultaneously preparing a maiden Mineral Resource for GEO-01. Together, these deposits will form a basis for a revised Minyari Dome scoping study. We look forward to sharing the outcomes from these project advancement milestones in the coming weeks."

Focus on Minyari

Just two weeks ago the company confirmed gold mineralisation at the project, from assay results of two diamond core holes, totalling 1,664 metres of drilling, at two geophysical targets within the Pacman area. 

The targets are about 30 kilometres east of the Minyari deposit and align with the trend from the Havieron deposit, which contains 7 million ounces of gold and 275,000 tonnes of copper.

The drilling was part of the CY2024 Phase 1 drilling program which has yielded promising results, particularly at the PM1 target which is considered a magnetic high and a Havieron analogue.

Project advancement plan

With money in the bank, Antipa will now focus on the following:

• deliver the GEO-1 maiden Mineral Resource Estimate (MRE) in the first half of September 2024;

• update the Minyari Dome MRE in the first half of September 2024;

• complete the update of the August 2022 Minyari Dome Scoping Study in the second half of September 2024;

• conduct CY2024 Phase 2 Exploration Program;

• work on the final stages of development, expected to comprise reverse circulation and diamond core drilling, primarily focused on Mineral Resource expansion, including at the GEO-01 discovery; and

• start drilling in Q4 CY2024.

Highlights of the sale

There are several benefits that will come from the sale of the Citadel Project: 

• it monetises Antipa’s entire non-core 32% non-controlling interest in the Citadel Project;

• a cash consideration of A$17 million is payable on completion, with no tax liability expected;

• conditions precedent are limited to executing a formal sale agreement and entering into deeds in favour of the relevant Native Title parties;

• completion is expected by November 2024;

• upon completion, Antipa expects to have around A$23 million in cash; and

• the transaction enables Antipa to fund its 100%-owned Minyari Dome Project drilling programs in conjunction with development appraisal-related workstreams.

By Jonathan Jackson

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