Alicanto Minerals Secures AU$18.1 Million Funding Package from Stria Lithium; Shares Fall 7%

MT Newswires Live04-09 09:26

Alicanto Minerals (ASX:AQI) has obtained a AU$18.1 million non-dilutive funding package from Stria Lithium to help advance its 915,000-ounce resource at the Mt Henry gold project in Western Australia, according to a Thursday filing with the Australian bourse.

The package consists of an upfront cash payment of AU$5 million from Stria in exchange for a 1% net smelter return royalty over the Mt Henry project, and 4 million Stria shares valued at AU$3.1 million.

It also includes the potential for a further AU$10 million cash investment from Stria if Alicanto reports a mineral resource estimate of at least 2 million ounces at or greater than 0.8 grams per tonne grade of gold, increasing the net smelter return royalty rate to 2%, per the filing.

Alicanto said it will hold about 6.5% of Stria after the deal's completion, which is subject to approval from regulators and Stria shareholders. Alicanto also has the right of first refusal over any sale of the royalty by Stria.

Shares of Alicanto Minerals were down 7% in recent trading.

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