Archer Materials (ASX:AXE) to sell mineral tenements

• Archer Materials (AXE) has signed a legally binding share agreement with ASX-hopeful iTech Minerals for the sale of three subsidiaries holding the company’s remaining mineral tenements
• AXE is set to receive 50 million consideration shares once the sale goes through, which the company intends to distribute to shareholders through a pro-rata in-specie distribution
• The deal is subject to several conditions, including that iTech lists on the ASX
• Following the sale, Archer will no longer hold any mineral exploration licenses, mining leases or other types of tenement
• However, it will retain the two per cent national storage REIT royalty granted on the sale of its Eyre Peninsula tenements to Baudin Minerals in December
• The sale will help fund the development of Archer’s 12CQ room-temperature quantum computing chip and the A1 Biochip
• iTech Minerals expects to list on the ASX before September
• Archer Materials shares are up 2.25 per cent, trading at 91 cents each

Archer Materials (AXE) has signed a legally binding share agreement with ASX-hopeful iTech Minerals for the sale of three subsidiaries holding the company’s remaining mineral tenements.

Archer is an Australian materials technology developer creating innovative deep tech in quantum computing, biotechnology and reliable energy.

AXE is set to receive 50 million consideration shares once the sale goes through, which the company intends to distribute to shareholders through a pro-rata in-specie distribution.

The deal, however, is contingent on several conditions, including that the buyer lists on the ASX and Archer obtains shareholder approval.

Although AXE will no longer hold any mineral exploration licenses, mining leases or other type of tenement, the company says it will keep a two per cent national storage real estate investment trust (REIT) royalty granted on the sale of its Eyre Peninsula tenements to Baudin Minerals in December last year.

The current sale aligns with the company’s strategy to fund and grow its advanced materials business by monetising its non-core mineral exploration assets — particularly the development of its 12CQ room-temperature quantum computing chip and the A1 Biochip.

Additionally, Archer is planning a deal with iTech for the future purchase of graphene from its Campoona graphite operations in South Australia.

Archer Executive Chairman Greg English commented on the prospective sale to iTech.

“For the past year, we have been regularly informing shareholders and investors of our desire to sell our mineral tenements and simplify our business model,” he said.

“The sale of our remaining tenements to iTech is the last step in this process and we are now fully focussed on the growth of our advanced materials business,” Greg added.

“The simplification of our business model and the sharpening of our focus on our Advanced Materials business should help the company to attract interest from technology focussed investors and businesses.”

iTech Minerals expects to list on the ASX before September.

Archer Materials shares are up 2.25 per cent, trading at 91 cents each at 10:56 am AEST.