Marmota Bets $1M on G4 Metals’ Copper IPO and Resource Milestones

• Sale of West Melton copper tenement EL 6701 to G4 Metals for $1 million in shares
• Transaction contingent on G4 Metals’ successful IPO by end of 2026 and ministerial approval
• Performance-based share payments linked to JORC resource milestones of 50,000 and 100,000 tonnes copper
• Marmota retains upside exposure through substantial stake in G4 Metals
• G4 Metals aims to develop copper projects in South Australia, including West Melton and Yorke Peninsula

Marmota’s Strategic Shift

Marmota Limited (ASX: MEU) has entered into a binding agreement to sell its West Melton copper tenement (EL 6701) to G4 Metals Pty Ltd, a company newly formed to advance copper projects in South Australia. The deal, announced on 7 May 2025, is structured as a $1 million share consideration payable upon G4 Metals’ successful initial public offering (IPO), targeted for 2026.

This move signals Marmota’s intent to streamline its portfolio, focusing on its core gold, titanium, and uranium assets, while maintaining exposure to copper upside through its stake in G4 Metals. The West Melton tenement, adjacent to the Hillside copper-gold project recently acquired by Indonesia’s Salim Group for $393 million, is a strategically valuable asset in a region with a rich copper mining history.

Deal Structure and Contingencies

The agreement grants G4 Metals exclusive rights to the tenement, subject to ministerial approval and the successful completion of its IPO by 31 December 2026. Should the IPO not proceed, Marmota reserves the right to withdraw from the deal. Upon IPO completion, Marmota will receive $1 million worth of G4 Metals shares.

Additionally, Marmota stands to gain further performance-based share payments tied to exploration success. Specifically, if G4 declares a JORC-compliant copper resource exceeding 50,000 tonnes on either the West Melton or Yorke Peninsula tenements, Marmota will receive $250,000 in G4 shares. A subsequent milestone of 100,000 tonnes copper resource will trigger another $250,000 share payment. These incentives align Marmota’s interests with G4’s exploration progress and resource development.

Market Implications and Outlook

G4 Metals’ planned IPO and exploration activities position it as a focused copper player in South Australia, a region gaining attention amid rising copper demand driven by the energy transition. Marmota’s deal structure cleverly balances immediate capital return with potential upside, allowing shareholders to benefit from G4’s growth without direct operational involvement.

Chairman Dr Colin Rose highlighted the strategic rationale, noting the complementary nature of the transaction given Marmota’s existing project commitments. The proximity to the Hillside project, now under the Salim Group, adds a layer of regional validation to the asset’s potential.

Investors will be watching closely for progress on G4 Metals’ IPO and exploration results, which will be critical in unlocking the value embedded in this deal.

Bottom Line?

Marmota’s sale to G4 Metals sets the stage for a copper play with upside tied to exploration success and market timing.

Questions in the middle?

• Will G4 Metals successfully complete its IPO by the end of 2026?
• How quickly can G4 advance exploration to declare significant JORC copper resources?
• What impact will ministerial approval timing have on the transaction’s completion?