Key points
- Gabanintha Mineral Rights revert to Australian Vanadium Ltd
- Consideration of $1,750,000 paid to Albright Metals
- Transfer of 0.75% royalty over Tumblegum South Gold Project
Full summary
Australian Vanadium Ltd (ASX:AVL) has entered into an agreement with Albright Metals Limited (ASX:ABR) to terminate the Gabanintha Mineral Rights Sale Agreement of 2017. Under the agreement, Albright Metals' rights and interests in the Gabanintha Project revert to AVL. AVL will provide Albright Metals with consideration of $1.75 million, comprising $500,000 in cash and $1.25 million in AVL shares. Additionally, AVL's 0.75% Net Smelter Return royalty over the Tumblegum South Gold Project will be transferred to Albright Metals. The transaction is unconditional and will be completed two business days after the agreement date.
Outlook
The transaction is expected to provide AVL with greater flexibility over its Australian Vanadium Project and allow Albright Metals to focus on its Golden Pike Project in Canada.