Archer Materials Ltd becomes pure play deep technology company after signing binding deal to sell all mineral tenements

Archer Materials Ltd becomes pure play deep technology company after signing binding deal to sell all mineral tenements

The sale is constant with Archer’s system of monetising its non-core mineral exploration belongings to fund and improve its Sophisticated Supplies business.

() () (FRA:38A) has signed a lawfully binding share sale settlement with private business iTech Minerals Pty Ltd for the sale of all of the subsidiary organizations that hold Archer’s mineral tenements.

The sale of the tenements will see Archer simplify its business enterprise product and switch into a pure-play deep technology enterprise, concentrating on its superior materials organization.

It is dependable with Archer’s technique of monetising its non-main mineral exploration belongings to fund and mature its State-of-the-art Products organization, in unique the improvement of its 12CQ space-temperature quantum computing chip and the A1 Biochip.

The tenement sale and obtain agreement is subject matter to sure problems precedent, together with the customer listing on the ASX.

Totally targeted on Highly developed Materials

Archer govt chairman Greg English said: “For the previous year, we have been frequently informing shareholders and buyers of our drive to sell our mineral tenements and simplify our business enterprise model.

“The sale of our remaining tenements to iTech is the previous action in this method, and we are now thoroughly focussed on the progress of our Highly developed Elements organization.

“The simplification of our business design and the sharpening of our focus on our Highly developed Resources company must support the enterprise to catch the attention of interest from technology-centered traders and organizations.”

Shares have been as considerably as 4% bigger today to A$.925 and the firm’s industry cap is roughly A$201.2 million.

Terms of the offer

The tenements are held by Archer’s wholly-owned subsidiaries – SA Exploration Pty Ltd, Archer Pastoral Firm Pty Ltd and Pirie Sources Pty Ltd – and Archer has agreed to offer all of the subsidiaries shares to iTech.

Completion of the sale and purchase of the subsidiaries is topic to the satisfaction or waiver of particular circumstances precedent, which includes:

  •  NSW Federal government approval to the change in command of SA Exploration
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  •  iTech raising at least $5 million and listing on ASX
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  • Archer obtaining ATO Demerger reduction and
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  • Archer getting shareholders’ approval.
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At completion, Archer will get 50 million thought shares, which the board designs to distribute to Archer shareholders by way of a professional-rata in-specie distribution, matter to the receipt of favourable tax assistance and regulatory and Archer shareholder approvals.

Archer will maintain an remarkable general assembly to look for shareholder approval of the sale of the subsidiaries and the in-specie distribution of the thought shares.

Additional facts on the deal

Further more info about the transaction, iTech, and the in-specie distribution of the consideration shares,  which includes the report day for suitable Archer shareholders to obtain their thought shares, will be bundled in the discover of meeting to be dispersed to Archer shareholders in June/July 2021.

Specific facts on iTech, the present of securities underneath the proposed preliminary public featuring, ASX listing and an indicative timetable will be bundled in a prospectus to be prepared by the iTech.

iTech has educated Archer that it expects to lodge the prospectus by the conclusion of July 2021.

Mining functions

On completion of the sale of its 3 wholly-owned subsidiary providers, Archer will no for a longer period maintain any mineral exploration licences, mining leases or any other form of mineral tenement.

Archer will, on the other hand, continue to keep the 2.% web smelter return (NSR) royalty granted on the sale of the Eyre Peninsula tenements to Baudin Minerals Pty Ltd.

It also strategies to execute an settlement with the buyer for the long term order of graphene from the Campoona graphite operations.