Steadright Critical Minerals (CSE: SCM) is buying its way into its own processing.
The company has signed a definitive agreement to acquire a 50% interest in a Moroccan firm that owns a quarry site along with crushing and grinding equipment, a move that hands the explorer in-house processing capacity close to its existing land holdings in the country.
The asset, referred to as QSCG, is currently held entirely by two vendors, Maghreb Atlas Trading Sarl and Mining & Research Company. After closing, Steadright will hold 50%, with the two vendors retaining 25% each.
Consideration comes in two parts. Each vendor receives 5 million Steadright shares at an adjusted cost base of 20 cents per share, and €700,000 is payable into a lawyer trust account as a pass-through settlement. Neither vendor will end up holding more than 10% of Steadright.
The cash portion only flows once Steadright completes due diligence and a full valuation of the equipment and land. Steadright has also committed up to CAD $480,000 toward repairs and upgrades at the site, on no fixed timeline, and carries no obligation to perform operational work on the assets for twelve months after closing.
Day-to-day operations stay with QSCG’s local manager, while major decisions, including capital raises, asset sales and changes in business direction, require 75% shareholder approval.
CEO Matt Lewis was characteristically upbeat. “This purchase absolutely aligns with our business model of finding strong assets and moving them along as fast as possible,” he said, noting that the equipment’s location relative to Steadright’s land makes processing available on the company’s own timelines.
Steadright Critical Minerals last traded at $0.20 on the CSE.
