The company expands into copper and uranium assets
Piper Alderman has provided key legal assistance to Aruma Resources Limited, an ASX-listed minerals exploration company, in its recent acquisition of a strategic portfolio of copper and uranium exploration assets. This move marks a significant diversification for the company as they have traditionally focused on lithium and gold.
The acquired assets include the Wilan IOCG-Uranium Project in South Australia's Olympic Dam precinct, as well as the Fiery Creek Copper Project and the Bortala Copper Project in Queensland's Mount Isa region.
The legal team at Piper Alderman involved James Dickson, Bonnie Doyle, and Ashleigh De Silva, in facilitating the transaction. Their work involved preparing the share acquisition agreement, a royalty deed, and other essential documentation to secure shareholder approval and announce the deal on the ASX.
Under the agreement, Aruma Resources will acquire the projects by purchasing all issued shares of NHM Holdings Pty Ltd, a holding company with three subsidiaries that own the projects. The acquisition, pending shareholder approval, will involve issuing 26.5 million fully paid ordinary shares and 52.5 million options to NHMHA shareholders.
These options will be exercisable into fully paid ordinary shares upon meeting specific mineral exploration and development milestones. Additionally, a 2% net smelter royalty has been granted to NHMHA shareholders on minerals extracted and sold from the tenements.
“We are excited about the company-changing potential of this acquisition. In seeking to expand our asset portfolio we have assessed a number of projects against key criteria designed to drive market support for the company and value accretion for shareholders,” Aruma Resources managing director Glenn Grayson said.
“The company views the ability to acquire this IOCG, uranium, and copper prospective asset portfolio at a time of prevailing strength in these commodity markets underpinned by a bullish long term outlook as being potentially transformational. We look forward to sharing details of our journey to unlock the value of this new asset portfolio in the weeks and months ahead.”
Following approval, Aruma Resources plans to begin targeted fieldwork to identify priority drill targets and maximize the value of the new projects.
