Middle Island Resources Ltd. will sell its 100 per cent-owned Georgina and Barkly exploration projects in the Northern Territory to Alroy Copper Pty Ltd., as part of its efforts to align its balance sheet.
The divestment package comprises nine exploration licences across approximately 4,200 square kilometres in the Northern Territory.
Under the terms of the deal, Middle Island will receive AU$50,000 in cash consideration, alongside the return of a AU$68,332 rehabilitation bond currently held by the Northern Territory government.
Alroy Copper has also covered AU$84,364 in outstanding tenement rental payments and agreed to fund all remaining rents through to transaction completion.
Importantly, Middle Island retains long-term exposure to the Barkly and Georgina assets via a 1.5 per cent net smelter royalty on any future copper produced from the divested ground.
The transaction is a way to streamline the company’s portfolio, instantly removing forward funding commitments of roughly AU$400,000 per annum in holding rates, rents, and mandatory exploration expenditure.
Middle Island Executive Chairman Daniel Raihani described the sale as a pragmatic step to simplify the company’s capital allocation while preserving exploration upside.
“This transaction is a sensible piece of portfolio housekeeping for Middle Island which removes close to $400,000 per annum in forward funding obligations while retaining potential upside through a significant royalty,” Raihani said.
The shift enables Middle Island to focus its resources on its recently acquired Serbian exploration portfolio in the highly prospective Western Tethyan Mineral Province.
The company’s European footprint encompasses 13 licences across 590 square kilometres, including the Bobija, Timok, and Priboj project areas targeted for major gold and base metal discoveries.
