Rubix Proposes $1.2M Cash and 10M Shares for Cameroon and Congo Bauxite Projects
Rubix Resources has entered a non-binding agreement to acquire bauxite exploration projects in Cameroon and Congo, with a structured payment plan including cash, shares, and performance rights tied to resource milestones.
- Non-binding agreement to acquire 100% interest in bauxite projects in Cameroon and Congo
- Consideration includes $1.2 million cash, 10 million shares, and performance rights
- Completion contingent on due diligence, regulatory and shareholder approvals
- Projects cover large, underexplored areas with limited modern exploration
- Binding agreement expected within 90 days or deal lapses
Strategic Expansion into African Bauxite
Rubix Resources Limited (ASX, RB6) has announced a significant step towards expanding its mineral portfolio with a proposed acquisition of bauxite exploration projects in the Republic of Cameroon and the Republic of Congo. The company has entered into a non-binding agreement with Nyos Metals Pty Ltd and Yoro Metals Pty Ltd, setting out indicative terms for acquiring 100% interests in several exploration license applications across these two African nations.
Structured Consideration Reflects Growth Ambitions
The proposed deal involves a multi-faceted consideration package totaling $1.2 million in cash payments, alongside the issuance of 10 million Rubix shares and additional deferred shares. Notably, the agreement includes performance rights that convert into shares upon achieving key milestones, a JORC-compliant resource estimate of at least 50 million tonnes at 42% alumina, and a scoping study demonstrating either a net present value exceeding $500 million or an internal rate of return of at least 25%. These conditions underscore Rubix’s commitment to value creation and risk management.
Projects Offer Untapped Potential Amid Limited Modern Exploration
The Cameroon projects include licenses in areas such as Bangem and Fontem, regions known for significant bauxite reserves but with limited recent exploration activity. Similarly, the Congo projects cover approximately 3,000 square kilometers across northern and southern concessions, including Kouyi and Kibangou, which are considered prospective yet underexplored. The lack of modern drilling and technical work presents both an opportunity and a challenge for Rubix as it seeks to unlock value in these jurisdictions.
Conditions and Next Steps
Completion of the acquisition is subject to several customary conditions precedent, including satisfactory technical, financial, and legal due diligence, as well as obtaining necessary regulatory and shareholder approvals. The parties have agreed to negotiate exclusively and in good faith to finalize a binding agreement within 90 days. Failure to do so will result in termination of the non-binding agreement, leaving the deal’s future uncertain.
Implications for Rubix’s Growth Trajectory
This move signals Rubix’s strategic intent to diversify its asset base beyond its existing gold and base metal projects in Australia and Canada. By targeting bauxite, a critical raw material for aluminium production, Rubix is positioning itself to capitalize on growing global demand driven by industrial and green energy transitions. However, the early-stage nature of the projects and the conditional structure of the deal mean investors should watch closely for progress on due diligence and milestone achievements.
Bottom Line?
Rubix’s African bauxite ambitions hinge on swift deal closure and successful exploration milestones to reshape its growth outlook.
Questions in the middle?
- Will Rubix secure shareholder approval for the significant share issuance tied to this deal?
- How will Rubix manage exploration risks in underexplored African jurisdictions?
- What timeline is expected for achieving the JORC resource and scoping study milestones?
