SYDNEY: Impact Minerals Limited (ASX:IPT) has officially signed a share sale and purchase agreement to divest up to 75% of its wholly-owned Commonwealth Project in New South Wales. The agreement follows the Revised Term Sheet announced on August 16th, 2023.

Dr. Mike Jones, Managing Director of Impact Minerals, expressed the company’s strategic approach to holding substantial land in Australia’s most prospective regions. “With our focus on the Lake Hope High Purity Alumina Project, it’s time to unlock value for our shareholders from our other projects,” said Dr. Jones.

The deal with Burrendong Minerals, which has raised seed capital for an IPO, allows Impact to maintain a significant stake in the Commonwealth Project. This project neighbors the Boda-Kaiser porphyry copper-gold discovery by Alkane Resources.

Impact Minerals is poised to support Burrendong Minerals in its journey towards an IPO, offering priority share application rights to its shareholders. The company is also exploring potential deals for its Broken Hill project and plans to commence drilling at Arkun for Rare Earth Elements, copper, and nickel in the upcoming quarter.

The terms of the share sale agreement include a two-stage acquisition process for Burrendong Minerals, with conditions such as completing an IPO and listing on the ASX within nine months, a cash payment to Impact, and the issuance of shares. Additionally, Impact Minerals will have the right to nominate a director to Burrendong’s board.

Upon listing, the Commonwealth Project will be operated under a joint venture, with Burrendong having the option to increase its interest by funding exploration. Should Impact’s interest fall below 10%, it will convert to a 2% Net Smelter Royalty.

This strategic move marks a new chapter for Impact Minerals, as it seeks to leverage its assets and provide value to its shareholders through this collaborative venture with Burrendong Minerals.

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