Antipa Minerals Ltd (ASX:AZY) has wrapped up the sale of its non-controlling interest in the Citadel Joint Venture Project to Rio Tinto (ASX:RIO) Exploration Pty Ltd for A$17 million in cash.
Strong financial foundation
The company is now in receipt of the A$17 million cash consideration from Rio Tinto, which raises Antipa’s cash reserves to in excess A$23 million – a strong financial foundation to accelerate development of Antipa’s 100%-owned Minyari Dome Gold-Copper Project.
The sale bolsters Antipa’s ability to focus not only on the advancement of Minyari Dome, but also to benefit from its interests in two remaining complementary major growth projects – the Paterson Farm-In Project with IGO (100% Antipa) and the Wilki Farm-in Project with Newmont (100% Antipa).
Antipa managing director Roger Mason said: "The completion of this transaction is a significant milestone for Antipa and places us in an excellent financial position, with a robust cash balance of approximately A$23 million.
“Our recently updated scoping study for the Minyari Dome Project underscored the quality of our wholly owned asset and highlighted the positive economic leverage available with any further exploration success.
Strengthened treasury position
“With a strengthened treasury position, we have an excellent financial foundation from which to advance exploration and development of our 100%-owned Minyari Dome Project, alongside other value accretive activities within WA’s highly prospective Paterson Province.
“On behalf of the Antipa Board and management team, I extend our thanks to Rio Tinto for their collaboration throughout our time as joint venture partners and during the sale process.
“We look forward to observing the advancement of the Citadel Project under Rio Tinto’s stewardship."
The company recently confirmed the viability of Minyari Dome with an updated scoping study.
Based on the September 2024 Mineral Resource Estimate, the study highlights a potential stand-alone gold mining operation with 47.6 million tonnes of mineral resources containing 2.3 million ounces of gold, 84,000 tonnes of copper, 661,000 ounces of silver and 13,000 tonnes of cobalt.
Strong economics
The study points to a 10+ year mine life, with an estimated plant throughput of 3 million tonnes per annum, delivering an average of 130,000 ounces of gold annually.
The project’s pre-tax net present value (NPV) stands at A$834 million, with a 52% internal rate of return (IRR).
Antipa is conducting a Phase 2 drilling program for 2024, consisting of 70 drill holes across 11,000 metres.
The campaign aims to expand the GEO-01 deposit, explore new targets and collect metallurgical samples to support future feasibility studies, with initial assay results due in December.
While the current base case centres on a stand-alone development, Antipa is also considering third-party processing options at the nearby 22-million-tonne-per-annum Telfer processing facility, which could provide greater risk-weighted value to shareholders.
Along with the active drill campaigns underway, the company is planning various technical work streams designed to further de-risk and refine the development opportunity.