Acquisition of NSR Royalty Youanmi Gold Project
Perth, April 12, 2023 AEST (ABN Newswire) - Venus Metals Corporation Limited (
ASX:VMC) is pleased to announce the agreement to acquire a 0.3% net smelter royalty ("NSR Royalty") in relation to the Youanmi Gold Mining Leases from St Clair Resources Pty Ltd by Venus' wholly owned subsidiary, Redscope Enterprises Pty Ltd ("Redscope"). Redscope Enterprises Pty Ltd currently holds a 0.7% NSR Royalty at Youanmi and once the acquisition completes, Redscope's royalty holding will increase to a 1% NSR Royalty.
The key terms of the acquisition are as follows:
- Venus has paid a $50,000 deposit upon execution of the agreement;
- at completion, Venus to pay an additional $450,000 in cash and issue 3 million fully paid ordinary Venus shares at a deemed issue price of $0.18 per Venus share; and
- completion of the acquisition to occur within 30 days of execution of the agreement.
The Venus shares being issued will rank equally with the existing fully paid ordinary Venus shares then on issue, but will be subject to a three month voluntary escrow from completion. The Venus shares will be issued utilising the Company's existing Listing Rule 7.1 capacity.
The Company considers that the acquisition of the additional NSR Royalty, increasing Redscope's aggregate NSR Royalty over the Youanmi Gold Mining Leases to 1%, could provide significant value to the Company if the Youanmi Gold Project goes into production.
About Venus Metals Corporation Limited
Venus Metals Corporation Limited (ASX:VMC) is a West Australian based Company with a focus on gold, base metals, vanadium and lithium exploration projects. The Company aims to increase shareholder value through targeted exploration success on its projects.
The Company's major gold project is the Youanmi Gold Mine, located 500km north-east of Perth. The Youanmi Gold Mine is now jointly owned by Venus Metals (30%) and Rox Resources Limited (70%); Indicated and Inferred Resource of the mine is in excess of 3 million ounces of gold.
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