Acquisition of royalty over Sandstone Gold Project tenements

Key points

• Acquisition of 2% Gross Revenue Royalty over Sandstone Gold Project tenements
• Royalty covers an unconstrained Mineral Resource of 1,046,000 oz of gold
• Strengthens Red Hill's diversified commodity royalty portfolio

Full summary

Red Hill Minerals Limited (ASX: RHI) has entered into a binding Heads of Agreement to acquire a 2% Gross Revenue Royalty over the Sandstone Gold Project tenements. The royalty tenements cover approximately 443 km2 and contain an unconstrained Mineral Resource of 23.5 Mt @ 1.4 g/t Au for 1,046,000 oz, predominantly on granted mining leases. Since the completion of Brightstar Resources Limited's scheme of arrangement with Alto Metals Limited in December 2024, Brightstar has commenced exploration on the tenements and is planning an aggressive exploration program for the coming field season involving approximately 80,000m of drilling across their Sandstone Hub in CY25. The transaction consideration is a cash payment of $4 million on completion, with further deferred contingent payments to be paid in instalments equating to 50% of the royalty receipts from the first eight quarters of future production from the tenements. The acquisition of the royalty is in line with Red Hill's strategy to build a diversified commodity royalty portfolio.