Sirius cuts deal with Creasy
Sirius Resources has struck a deal with Mark Creasy to secure outright ownership of its company-defining nickel-copper discoveries, a move that will make it easier to secure funding for a mine development.
Under the terms of the deal announced this morning, Sirius will pay Mr Creasy a mix of shares and cash for the legendary prospector's 30 per cent stake in the tenements that contain the Nova and Bollinger deposits.
In addition to $28 million cash, Mr Creasy - already Sirius' biggest shareholder - will be granted 70.6 million shares to increase his shareholding to 35 per cent.
Sirius shares were up 5 cents, or 2 per cent, to $2.32 at 7.43am.
The deal will be subject to approval from Sirius' other shareholders.
Sirius' long-standing corporate adviser Hartley helped to arrange the deal.
Sirius managing director Mark Bennett described the deal as "beneficial" and removing "complexities as we progress negotiations in respect of project finance and offtake arrangements and then commence development of the Nova-Bollinger project".
The market had long been expecting a deal because of Sirius' stated aim to finalise funding and begin Nova-Bollinger's mine development this year.
The two discoveries, among the best mineral finds in Australia in the past two decades, are north north-east of Norseman, on the edge of the Nullarbor.
Sirius' exploration success has sparked a rush by other juniors into the Fraser Range area. Mr Creasy controlled much of the area and has signed multiple deals, akin to the initial Sirius arrangement, to grant juniors access to his tenements.
