RG Gold is said to consider stake sale to fund growth
RG Gold is developing one of the largest single-gold deposits in Kazakhstan.
Aldebaran Resources (TSXV: ALDE) is teaming up with Nuton, Rio Tinto’s sulphide leaching technology venture, to advance the company’s flagship Altar copper-gold project through to the pre-feasibility stage.
Under an agreement signed Thursday, Nuton can acquire a 20% indirect interest in the Altar project by making staged payments totaling $250 million over an approximate two-year period. For this year, Aldebaran will receive an upfront payment of $10 million, plus $20 million after the publication of a new resource estimate, which is expected this month.
Nuton would pay another $30 million upon the delivery of a preliminary economic assessment on the Altar project, expected in the second/third quarter of 2025. The remaining $190 million would be paid to Aldebaran in 2026 once a PFS is published.
The Rio venture has the right to terminate the option agreement at any payment stage, upon which Aldebaran will retain its 80% interest in the project as well as any cash payments made prior to termination.
“This deal has many benefits to Aldebaran shareholders in that it provides for non-dilutive capital injections to fund future work programs on the Altar project through to completion of a PFS, if Nuton proceeds through each milestone,” Aldebaran CEO John Black said in a statement.
Shares of Aldebaran Resources soared to an all-time high of C$1.98 following the news, sending its market capitalization north of C$300 million for the first time since it spun out from Regulus Resources in 2018. By 12:50 p.m. in Toronto, the stock had pulled back to around C$1.80 for an 18% intraday gain.
The companies will also work together to evaluate Nuton’s sulphide leaching technology in the upcoming PEA and PFS studies. The technology, says Aldebaran, has the potential to materially improve the economics of the project.
The collaboration will comprise two stages. Phase 1 is currently ongoing, as samples from the Altar project totalling 2,100 have already been shipped to Nuton earlier this year for testing. Results are expected in Q2 2025 and will be included in the PEA.
The Phase 2 work involves drilling several new “twin-holes” of existing drill holes to provide Nuton with material for testing and the simulation of an operational heap-leach pad. Data of the simulation will then be used for the PFS.
The cost of the drill program will be paid from Nuton’s $10 million signing payment, but if the drill program exceeds $5 million, Nuton will advance those costs from the PEA payment. All costs associated with the actual testing of the Altar drill core with the Nuton technologies will be borne by Nuton.
“Nuton’s proprietary sulphide leaching technologies could add significant value to the Altar project by reducing the costs and capital required for development. Our current plan for the PEA and PFS is to show both Nuton and non-Nuton cases,” said Black.
The Altar project comprises a cluster of porphyry deposits in San Juan, Argentina. A pit-constrained resource estimate was published in 2021, showing 11.4 billion lb. of copper and 3.4 million oz. of gold in the measured and indicated categories, plus 1.7 billion lb. copper and 400,000 oz. gold inferred.
Aldebaran holds the project’s interest through its 60% stake in Peregrine Metals, a private Canadian company that owns the project, but is in the process of finalizing an earn-in with Sibanye-Stillwater for an additional 20%.
Should Nuton elect to follow through its option agreement and complete the PFS, Altar would then be owned as follows: Aldebaran 60%, Sibanye-Stillwater 20% and Nuton 20%, with Aldebaran operating the project.
In addition to Sibanye, Aldebaran’s other notable shareholder is Australia’s South32, which raised its holding to 14.81% last year following a private placement.
