Marmota inks $1M deal to divest South Australian copper project
Marmota Limited has inked a $1 million deal to sell its West Melton copper tenement in South Australia's copper-rich Yorke Peninsula to G4 Metals, securing a cornerstone equity position in the copper-focused IPO hopeful while maintaining the company's exposure to the emerging copper province.
The divestment of West Melton for $1M in G4 shares is contingent upon a G4 achieving a successful IPO capital raise before the end of next year. The deal includes potential performance payments to Marmota of up to $500,000 in shares tied to discovery milestones.
West Melton sits adjacent to the Hillside copper project, which was formerly owned and developed by Rex Minerals. MACH Metals - a subsidiary of Indonesia's largest conglomerate Salim Group - bought Rex last year for $393 million.
The all-cash takeover underscored the allure of the well-endowed Yorke Peninsula. The region has a widespread history of copper production and is expected to become South Australia's next copper production hub, as copper prices begin to soar. Hillside has a massive 1.9 million tonnes of copper and 1.5 million ounces of gold.
'This deal has been specially structured with G4 Metals... in such a way that Marmota's shareholders will continue to be exposed to the upside by taking a substantial stake in the new company.'
Marmota Limited chairman Dr Colin Rose
Marmota's all-scrip deal ensures shareholders retain a front-row seat to the region's copper potential while allowing the company to focus on its bevvy of South Australian opportunities, including the advanced Aurora Tank gold project and its recent Muckanippie titanium discovery.
Marmota Limited chairman Dr Colin Rose said: ' This deal has been specially structured with G4 Metals - a company being set up to advance copper projects in South Australia - in such a way that Marmota's shareholders will continue to be exposed to the upside by taking a substantial stake in the new company. We look forward to working with G4 to finalise the sale and to future success in developing these assets in a prime copper tenement, in an area with a proud history of copper mining. '
If G4's IPO does not materialise before 2027, Marmota can walk away from the deal. Further sweetening the pot, Marmota will pocket $250,000 in shares if a JORC resource exceeding 50,000 tonnes of copper is declared at West Melton or G4's Yorke Peninsula tenements, with an additional $250,000 in shares for a resource surpassing 100,000t.
Following Rex's takeover, MACH carried out a competitive global partnering search to fund Hillside's $843M development. Hillside's stage one reserves contain 505,000t of copper and 435,000 ounces of gold. MACH has expansion plans underway, driven by a gold price sitting some US$1000 (A$1540) per ounce higher than at the time of its acquisition.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
West Australian
2 hours ago
- West Australian
Stocks rise ahead of US-China talks outcome
Stocks are buoyant and the dollar remains on guard as trade talks between the United States and China are set to extend to a second day, with tentative signs tensions between the world's two largest economies could be easing. US President Donald Trump put a positive spin on the talks at Lancaster House in London, which wrapped up for the night on Monday and were set to resume on Tuesday (7pm AEST). "The fact that we're still up here near record highs, does suggest that we are seeing the market accept what has been said by Trump and when you look at some of the other comments from Lutnick and Bessent, to me it seems to suggest that they are relatively happy with the progress," said Tony Sycamore, a market analyst at IG. "But the market always likes to see some concrete announcements." As Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer were set to meet for the second day with their Chinese counterparts, much of investors' focus has been on the progress of the talks. Any progress in the negotiations is likely to provide relief to markets given Trump's chaotic tariffs and swings in Sino-US trade ties have undermined the world's two biggest economies and hobbled global growth. MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.5 per cent, while Nasdaq futures gained 0.62 per cent. S&P 500 futures edged 0.43 per cent higher. EUROSTOXX 50 futures and FTSE futures both added roughly 0.1 per cent each. In Tokyo, attention was also on the Japanese government bond (JGB) market, following news that Japan is considering buying back some super-long government bonds issued in the past at low interest rates. The yield on the 10-year JGB fell one basis point to 1.46 per cent in early trade, while the 30-year yield slid five bps to 2.86 per cent. Yields on super-long JGBs rose to record levels last month due to dwindling demand from traditional buyers such as life insurers, and jitters over steadily rising debt levels globally. "The volatility at the super-long segment of the curve stems from a supply-demand imbalance that has been brewing since the BOJ embarked on balance sheet normalisation," said Justin Heng, APAC rates strategist at HSBC Global Investment Research. Japanese Finance Minister Katsunobu Kato said on Tuesday the government would conduct appropriate debt management policies while communicating closely with market participants. In currencies, the dollar attempted to regain its footing after falling on Monday. Against the yen, the dollar was up 0.45 per cent to 145.25. The euro fell 0.28 per cent to $1.1387 while sterling slipped 0.2 per cent to $1.3523. Trump's erratic trade policies and worries over Washington's growing debt pile have dented investor confidence in US assets, in turn undermining the dollar, which has already fallen more than eight per cent for the year. The next test for the greenback will be on Wednesday, when US inflation data comes due. Expectations are for core consumer prices to have picked up slightly in May, which could push back against bets of imminent Federal Reserve rate cuts. The producer price index (PPI) report will be released a day later. "May's US CPI and PPI data will be scrutinised for signs of lingering inflationary pressures," said Convera's FX and macro strategist Kevin Ford. "If core CPI remains elevated, expectations for rate cuts could be pushed beyond the June 18 FOMC meeting." Traders see the Fed keeping rates on hold at its policy meeting next week, but have priced in roughly 44 bps worth of easing by December. In the oil market, prices edged up, with Brent crude futures gaining 0.24 per cent to $US67.20 ($A103.09) a barrel. US West Texas Intermediate crude was last up 0.25 per cent at $US65.45 ($A100.40) per barrel after hitting a more than two-month high earlier in the session. Spot gold fell 0.5 per cent to $US3,310.40 ($A5,078.22) an ounce.
Perth Now
2 hours ago
- Perth Now
Aussie shares target record close as bank stocks rally
The Australian share market is on track for its best close, as US-China trade talks continue and the nation's corporate watchdog fast-tracks local stock listings. The S&P/ASX200 jumped 65.1 points, or 0.74 per cent, to 8,578.8, as the broader All Ordinaries rose 62.6 points, or 0.72 per cent, to 8,804.5. By midday, the top-200 was ahead of its February 14 record close of 8,555.8, but 64 points short of its 8615.2 intraday high, also set on Valentine's Day. The uptick followed two positive Wall Street sessions after local markets paused for the long weekend, and as officials from the US and China work to reach common ground on trade, particularly on rare earths and technology export restrictions. A two-year trial by the Australian Securities and Investments Commission to speed up the local listing process also had traders talking about a potential boom in initial public offerings, Moomoo market strategist Jessica Amir said. "A flood of IPOs would not only encourage foreign investment on the ASX, but also get Aussies more involved in their wealth creation," she said. Under the trial, ASIC will shorten the timeline for companies to list on the ASX, reducing deal execution risk and shortening the window of market volatility ahead of the public offering. "Our initial public offerings are the lowest they have been in over a decade, and companies are de-listing," ASIC chair Arthur Longo said. 'While we do not see regulatory settings as the silver bullet, we have received lots of ideas and are considering further regulatory adjustments to support a strong and well-functioning market." Nine of 11 local sectors were trading higher by lunchtime, as banks (+1.2 per cent) and consumer discretionary stocks (+1.3 per cent) led the bourse higher. All big four banks were trading at least one per cent higher, and the Commonwealth Bank was again within one per cent of its $182 record share price reached last week. Buy now, pay later player Zip Co was among the top-200's best performers, up almost six per cent to $2.32. Energy stocks led the gains in early trade and were up 1.1 per cent by midday, as positive signs from US-China trade talks helped oil prices to seven-week highs. Brent crude futures are trading at $US66.83 a barrel as a potential deal could boost the outlook for global growth and crude demand. The talks also helped lift large cap miners BHP and Fortescue by more than one per cent each, helping to push the materials sector 0.3 per cent higher. Gold miners were a sea of red, as risk-on sentiment pushed investors away from the safe haven in search of growth, with gold futures slipping to $US3,372 ($A5,105) an ounce. Uranium, lithium and other critical minerals plays were also higher. A lift in consumer discretionary stocks came with rallies for gambling machine plays Aristocrat Leisure (+2.7 per cent) and Light & Wonder (+4.0 per cent), along with a two per cent lift in JB Hi-Fi. IT stocks jumped 0.8 per cent, with help from data centre play NextDC, which surged 5.4 per cent to after announcing yet another improved contract utilisation update. The Australian dollar is buying 65.12 US cents, up from 64.41 US cents on Friday at 5pm.
Perth Now
2 hours ago
- Perth Now
Stocks rise ahead of US-China talks outcome
Stocks are buoyant and the dollar remains on guard as trade talks between the United States and China are set to extend to a second day, with tentative signs tensions between the world's two largest economies could be easing. US President Donald Trump put a positive spin on the talks at Lancaster House in London, which wrapped up for the night on Monday and were set to resume on Tuesday (7pm AEST). "The fact that we're still up here near record highs, does suggest that we are seeing the market accept what has been said by Trump and when you look at some of the other comments from Lutnick and Bessent, to me it seems to suggest that they are relatively happy with the progress," said Tony Sycamore, a market analyst at IG. "But the market always likes to see some concrete announcements." As Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer were set to meet for the second day with their Chinese counterparts, much of investors' focus has been on the progress of the talks. Any progress in the negotiations is likely to provide relief to markets given Trump's chaotic tariffs and swings in Sino-US trade ties have undermined the world's two biggest economies and hobbled global growth. MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.5 per cent, while Nasdaq futures gained 0.62 per cent. S&P 500 futures edged 0.43 per cent higher. EUROSTOXX 50 futures and FTSE futures both added roughly 0.1 per cent each. In Tokyo, attention was also on the Japanese government bond (JGB) market, following news that Japan is considering buying back some super-long government bonds issued in the past at low interest rates. The yield on the 10-year JGB fell one basis point to 1.46 per cent in early trade, while the 30-year yield slid five bps to 2.86 per cent. Yields on super-long JGBs rose to record levels last month due to dwindling demand from traditional buyers such as life insurers, and jitters over steadily rising debt levels globally. "The volatility at the super-long segment of the curve stems from a supply-demand imbalance that has been brewing since the BOJ embarked on balance sheet normalisation," said Justin Heng, APAC rates strategist at HSBC Global Investment Research. Japanese Finance Minister Katsunobu Kato said on Tuesday the government would conduct appropriate debt management policies while communicating closely with market participants. In currencies, the dollar attempted to regain its footing after falling on Monday. Against the yen, the dollar was up 0.45 per cent to 145.25. The euro fell 0.28 per cent to $1.1387 while sterling slipped 0.2 per cent to $1.3523. Trump's erratic trade policies and worries over Washington's growing debt pile have dented investor confidence in US assets, in turn undermining the dollar, which has already fallen more than eight per cent for the year. The next test for the greenback will be on Wednesday, when US inflation data comes due. Expectations are for core consumer prices to have picked up slightly in May, which could push back against bets of imminent Federal Reserve rate cuts. The producer price index (PPI) report will be released a day later. "May's US CPI and PPI data will be scrutinised for signs of lingering inflationary pressures," said Convera's FX and macro strategist Kevin Ford. "If core CPI remains elevated, expectations for rate cuts could be pushed beyond the June 18 FOMC meeting." Traders see the Fed keeping rates on hold at its policy meeting next week, but have priced in roughly 44 bps worth of easing by December. In the oil market, prices edged up, with Brent crude futures gaining 0.24 per cent to $US67.20 ($A103.09) a barrel. US West Texas Intermediate crude was last up 0.25 per cent at $US65.45 ($A100.40) per barrel after hitting a more than two-month high earlier in the session. Spot gold fell 0.5 per cent to $US3,310.40 ($A5,078.22) an ounce.
