Budding diversified mining house, Stirling Resources (ASX: SRE), has completed the share transfer and loan to Matilda Zircon (ASX: MZI).
The deal is significant to Stirling as it helps build its zircon and mineral sands assets portfolio.
Under the agreement with Matilda Zircon, Stirling's Australian zircon assets would be transferred to Matilda Zircon - to create a dedicated mineral sands development company.
Stirling has now acquired 171 million shares in Matilda Zircon, previously held by Territory Resources Limited (ASX: TTY), paid $1.75 million to Territory and received 35m shares in Matilda Zircon from the conversion of a $350,000 loan provided by Stirling to Matilda Zircon.
Stirling now holds 206 million shares in Matilda Zircon, representing 76% of the issued capital.
Stirling is also now owed $1.75 million by Matilda Zircon under the previously agreed terms and conditions. Territory has no further interest in any shares in Matilda Zircon, or any debt due by Matilda Zircon.
An additional 79 million Matilda Zircon shares will be acquired by Stirling once the Ministerial approvals to transfer the tenements are received. Following this, Stirling will hold 285 million shares, or 82% of issued capital of Matilda Zircon.
Stirling Resources Managing Director Michael Kiernan said the settlement of the share and loan transfer was another step toward commencement of zircon mining activities in the Northern Territory.
Kiernan said, “there are no foreseeable issues to affect the transfer of tenements and we look forward to settling this last element of the transaction very shortly.”
Stirling now has a significant stake in a Matilda Zircon, with a pipeline of zircon projects on the Tiwi Islands and Cape York, as well as mineral sands assets in WA, NT and Indonesia.
Stirling will, together with Matilda Zircon, continue to advance the recommencement of mining at the Tiwi Islands Zircon project and a significant exploration program at the Cape York Zircon project, north of Weipa in Queensland.
A future prize for Stirling shareholders is the un-explored Cape York Peninsula and Urquhart Point area. This encompasses what is arguably the largest unexplored prospective mineral sands terrain in the world, with more than 300 kilometres of highly prospective coastline.
Mr Kiernan said the latest deal is another step forward for Stirling, as it builds a strategic and diversified resources portfolio, specifically focusing on investment opportunities in zircon, copper, gold, coking coal and iron ore.
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