/Archer makes a move to exit exploration (via Qpute.com)
Archer makes a move to exit exploration

Archer makes a move to exit exploration (via Qpute.com)

PERTH (miningweekly.com) – ASX-listed Archer Materials has completed the sale of two tenements in the Eyre Peninsula to NextGen Materials in exchange for 9.25-million shares in that company.

Archer in December of last year struck a binding agreement for the sale of the two tenements for a sales price of A$2-million plus the bonus share payment on NextGen’s listing on a stock exchange.

Under the terms of the agreement, Archer would also be granted a 2% net smelter royalty return on minerals extracted from the two tenements, while retaining the right to explore for, and mine, graphite on the tenements.

Archer on Friday told shareholders that NextGen is expected to lodge a prospectus with the Australian Securities and Investment Commission in the coming weeks, and will list on the ASX by the end of September.

Meanwhile, Archer has also announced plans to divest of all of its graphite rights over its remaining mineral tenements, excluding those now held by NextGen, to iTech Minerals in exchange for 50-million shares.

The iTech transaction is subject to a number of conditions, including the satisfaction or waiver of a number of conditions, and iTech’s initial public offering and listing on the ASX.

Archer told shareholders that the iTech transaction and the NextGen deal would allow the company to become technology focused. The company is developing a world-first quantum computing qubit processor chip.

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