Australian Vanadium Ltd. on Jan. 20 said it agreed to sell the precious and base metal rights at the Gabanintha vanadium-titanium-iron ore project and a 100% equity in the Peak Hill project tenement, both in Western Australia, to unlisted company Bryah Resources Ltd.
Under the terms of the agreement, Australian Vanadium retains all mineral rights to vanadium, titanium, chromium, uranium, lithium, tantalum, iron ore and manganese within the Gabanintha project area and retains primary title over the licenses.
Bryah will take 100% ownership of the Peak Hill project tenement located in the northern Bryah basin in a separate transaction agreement.
Bryah, which is in the process of undertaking its IPO, will grant 5,000,000 ordinary, fully paid shares in the company and a 0.75% net smelter royalty from the commencement of production in exchange for the two projects. Australian Vanadium shareholders will be given priority opportunity to invest in the IPO.
Australian Vanadium will hold between 7% and 9% of Bryah upon the latter listing.
Additional preconditions for Bryah include a A$5 million capital raising and conditional approval to be granted official quotation on the ASX within six months.