Breakthrough Minerals (ASX: BTM), an Australian mineral exploration company primarily focused on copper-gold projects, has announced a binding agreement to divest its Errolls Gold Project in Western Australia. The company will sell 100% of Errolls Exploration Pty Ltd to Xenora Minerals Limited (ASX: XRA) for $1.2 million, to be paid in 6 million XRA shares at a deemed issue price of $0.20 per share. Subject to completion and necessary approvals, Breakthrough Minerals intends to distribute these XRA consideration shares to eligible BTM shareholders via an in-specie distribution, allowing them to retain exposure to Errolls’ future exploration potential.
This strategic move is designed to unlock immediate value from a non-core asset while enabling Breakthrough Minerals to sharpen its focus and deploy capital towards its flagship North Queensland Copper-Gold Project. BTM’s North Queensland portfolio boasts a Global Mineral Resource Estimate of 18.8 million tonnes at 1.07% Copper Equivalent. For XRA, the acquisition positions the Errolls Gold Project as part of a consolidated 115 square-kilometre landholding within the prospective Barrambie Greenstone Belt, especially when combined with XRA’s proposed acquisition of the adjoining Limestone Well Project.
BTM Managing Director & CEO, Nigel Broomham, commented that the proposed transaction represents a strong outcome for the company and its shareholders. He noted that while Errolls is a quality gold asset with exceptional historic grades, Breakthrough Minerals’ clear strategic priority lies in advancing its North Queensland copper-gold portfolio. The divestment not only realises $1.2 million in value but also preserves substantial exposure to future exploration upside across XRA’s consolidated position in the Barrambie Greenstone Belt for BTM shareholders.
The transaction remains subject to several conditions precedent, including XRA’s due diligence, the satisfaction of conditions under XRA’s Limestone Well agreement, and the receipt of all necessary regulatory and shareholder approvals. The consideration shares will also be subject to a 12-month voluntary escrow period from their issue date, irrespective of whether they are held by BTM or distributed to shareholders.
