FULL DISCLOSURE: Canacom Group is long the equity of Steadright Critical Minerals.
Steadright Critical Minerals (CSE: SCM) has landed an arrangement junior miners spend years chasing in the form of a stake in a project it can’t be diluted out of, and won’t have to pay to keep.
NSM Capital SARL, in which Steadright holds a 76.5% interest, has secured a full 32% carried interest in Shan Tang Mining SARL, the special purpose vehicle holding the TitanBeach titanium project in Morocco. The vehicle is jointly owned by NSM Capital and Homme Construction. The carry brings no dilution risk and requires no further contribution toward exploration or production costs.
That translates to an effective attributable interest of roughly 24.5% for Steadright. A shareholders agreement with Critical Foundation Metals Inc. leaves room for another 3.5% of NSM Capital, which would take the company to 80% of the subsidiary.
The carry arrives with a partner attached. Shan Tang Mining signed a Framework Cooperation Agreement on July 10 with a multinational state-owned engineering and construction group, covering planning, design, permanent works, and operations and maintenance.
The first order of business is a pilot plant at TitanBeach. Development of a long term mining strategy follows, contingent on what the pilot produces.
RELATED: Steadright Secures Mining Licence for TitanBeach Titanium Project
Permitting, meanwhile, is nearly settled. The project’s environmental permit has cleared the public process stage and is awaiting final signature.
The agreements follow last week’s approval of the Titanium Beach One mining licence, which covers roughly 16 square kilometres within a 192 square kilometre claim package. It is the first mining licence granted for coastal waters heavy mineral sands recovery in the Atlantic Ocean.
NSM Capital management said the carried interest is expected to provide meaningful value while allowing the company to participate “while benefiting from our partners’ expertise.”
Chief executive Matt Lewis was more direct. “We are proud of what the NSM Capital team and L. Jouak have achieved,” he said. “Securing this license and forging agreements of this caliber represents significant progress.”
Steadright Critical Minerals last traded at $0.12 on the CSE.
FULL DISCLOSURE: Canacom Group, the parent company of The Deep Dive is long the equity of Steadright Critical Minerals. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
