Middle Island Resources Limited has agreed to divest its 100%-owned Georgina and Barkly project exploration licences in the Northern Territory to Alroy Copper Pty Limited, cutting annual holding and exploration costs.

The transaction relieves Middle Island of approximately $400,000 per annum in forward funding commitments covering rates, rents and exploration expenditure across the nine licences, which cover approximately 4,200 square kilometres.

Under the agreed terms, Middle Island will receive $50,000 in cash and the return of a $68,332 Northern Territory Government rehabilitation bond. Alroy Copper has also covered the annual rent due on certain tenements totaling approximately $84,364 and will maintain all rental payments until completion. In addition, the buyer will grant Middle Island a 1.5% net smelter royalty on any copper produced from the tenements, preserving ongoing exposure to future asset development.

The divestment package comprises seven granted exploration licences and two pending applications. Middle Island previously completed a maiden exploration drilling program at the Georgina project area within the Barkly copper-gold project with co-funding from the Northern Territory Government.

The company is now progressing toward the formal completion of the sale agreement following the execution of the transaction terms.

“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.”

— Daniel Raihani, Executive Chairman

The asset sale aligns with Middle Island’s broader portfolio refocusing following its acquisition of Konstantin Resources Ltd, which expanded its exploration holdings into the Western Tethyan belt in Serbia with the Bobija, Priboj and Timok project areas.

Read the full announcement: Divestment of Northern Territory Exploration assets