Marmota (ASX: MEU) has agreed to sell its West Melton EL 6701 copper-gold tenement in South Australia to G4 Metals for $1 million. The consideration will be paid in G4 shares, with potential performance-based payments of up to $500,000 contingent on resource milestones. G4 has already provided a $5,000 cash deposit to cover tenement fees. Marmota aims to concentrate on its Muckanippie titanium and Aurora Tank gold projects following the divestment. Metallurgical testing at Aurora Tank showed gold recoveries of up to 93%.
The sale allows Marmota to maintain copper exposure through its stake in G4. G4 plans to begin exploration at West Melton later in 2024, with an initial public offering (IPO) targeted for 2026. The tenement adjoins Rex Minerals’ Hillside copper-gold project, acquired by The Salim Group for $393 million. Marmota retains the option to withdraw from the agreement if G4’s IPO does not proceed. According to Marmota chair Dr. Colin Rose, the deal benefits shareholders by providing continued upside potential through G4.
