FULL DISCLOSURE: The Deep Dive is long the equity of Steadright Critical Minerals.
Steadright Critical Minerals (CSE: SCM) has advanced discussions on the acquisition of the TitanBeach Titanium Project in Morocco. The previously outlined memorandum of understanding has advance to a letter of intent, with further terms set forth on the acquisition.
The transaction has been modified from the prior terms, with NSM Capital Sarl, the current controlling shareholder of the project, now agreeing to sell a 100% interest in the TitanBeach project. Steadright has agreed to acquire the project in tandem with Critical Foundation Metals, a Canadian based private issuer.
Under the revised terms, Steadright and Critical Foundation have agreed to acquire the project in exchange for $350,000 in cash and a 9.5% interest in Steadright, the latter of which will be issued upon the signing of a definitive purchase agreement. As part of the transaction, a 2% NSR royalty will also be issued on the project.
A 15% non-refundable deposit was already paid on the cash payment portion in connection with the signing of the LOI.
Upon closing, Steadright is set to hold a 75% interest in the TitanBeach project, while Critical Foundation Metals will own a 25% interest. Steadright has the right to increase their ownership in the asset to 5%, in exchange for a cash payment of US$1.0 million.
The TitanBeach Titanium Project consists of 160 square kilometres of exploration claims within the Cape Juby Strip of Morocco. The claims are prospective for titanium dioxide, which is said to be contained within sands on the property. Historic sampling conducting in 2023 is said to have returned assay results that include up to 42% iron and 4.7% titanium.
Steadright has previously indicated that it intends to immediately commence an independent 43-101 study on the TitanBeach project, with that work now believed to be underway. Exploration work associated with that study is expected to include further sampling of the sands.
“As a company, we are very impressed with the energy and business-mindedness of the Moroccan people and their government. In maximizing our footprint and potential, we have found the experience to be nothing but efficient and welcoming. More than ever, we firmly believe we can make great strides with the TitanBeach Titanium Project,” commented Steadright CEO Matt Lewis.
Steadright Critical Minerals last traded at $0.07 on the CSE.
FULL DISCLOSURE: Steadright Critical Minerals is a long investment of Canacom Group, the parent company of The Deep Dive. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
