Altus sells out 50% stake in Cameroonian bauxite JV

Project generator Altus Strategies has agreed to sell off its 50% stake in the Birsok bauxite project in Cameroon.  The company generated £3 million (US$3.96 million) in shares and a US$1.50 per tonne royalty. Canyon Resources bought the 50% stake in the project and became the existing joint venture partner on the Cameroonian bauxite project.

The company’s strategy is to develop early stage projects, put them into joint ventures and sell out to make profit. The CEO Steve Poulton expressed his pleasure at the success of the strategy.

"Our agreement with Canyon further validates our project generator business model, generating returns from exploration, while growing a portfolio of potential high value royalty income streams," he said.

Altus expects the sale agreed upon through a letter of intent to be completed by the end of the year. The company flagged the Birsok deal in September and talked about outlining high grade bauxite plateaux with 48.8% alumina content.

With the end of the JV, the company will be handed over 15 million shares first, 10 million will be handed over in 12 months’ time after one year of the deal and another 5 million shares will be issued "upon the execution of a mining convention on the Minim Martap project". 

Minim Martap project has a resource of 550 million tonnes at 45.5% total Al2O3. Altus has also signed LOI for the sale of its four Moroccan projects with Raptor Resources from Australia.