The share and cash deal to acquire remaining 34% interest mandates Liontown to issue 12 million shares to Currie Rose and make a payment of $120,000 for any transaction costs.
Under the terms of the agreement, Currie Rose will now receive a 2% net smelter royalty on future gold production from the Jubilee Reef project, while Liontown will have a conditional option to own 2% net smelter royalty if preliminary economic assessment is completed for a resource in excess of 250,000oz of gold.
As per the existing Jubilee Reef joint venture agreement, Currie Rose was liable to receive a 3% net smelter royalty upon its interest being diluted to 5%.
Liontown chairman Tim Goyder noted that the acquisition of the project and renegotiation of the royalty was in favor of the company as representing a good outcome for shareholders.
"Having the opportunity to consolidate ownership of the project will provide shareholders with exposure to 100 per cent of its substantial exploration potential and will be an important factor in being able to manage future exploration as effectively as possible," added Goyder.
