Macro Metals Agrees US$5.67 Million Sale of Agbaja Iron Ore Project

Macro Metals Moves to Exit Nigerian Iron Ore Asset

Macro Metals Limited (ASX:M4M) has taken a significant step to divest its Agbaja Iron Ore Project in Nigeria by signing a non-binding term sheet to sell 100% of KCM Mining Limited, the project’s registered owner, to RSIN Nigeria Limited for US$5.67 million. The deal is structured on a cash-free, debt-free locked-box basis, with a US$700,000 escrow down payment and a US$350,000 holdback payable 12 months post-completion.

This sale marks a strategic pivot for Macro Metals, enabling the company to concentrate its resources and capital on its Western Australian mining services and resource development businesses. The transaction proceeds, estimated netting approximately A$5.1 million after transaction costs, will be deployed in a non-dilutionary manner to accelerate growth in these core areas.

Buyer Profile and Transaction Conditions

RSIN Nigeria Limited, the buyer, is a Nigerian-incorporated company with nearly two decades of experience across mining, mineral processing, smelting, and steel manufacturing within Nigeria. It is backed by Fujian Xingchengxing Industrial Development Co Ltd, a Chinese guarantor with financial strength that Macro has assessed positively.

Completion hinges on several conditions, including the execution of a definitive Share Purchase Agreement within 20 business days, satisfactory buyer due diligence on title and tenements, and the extension of the community development agreement with the local Agbaja community through to at least December 2031. This community agreement is a critical element, ensuring continuity of local employment, training, and stakeholder relationships.

Other conditions include confirmation of the validity and value of KCM’s proprietary metallurgical intellectual property designed to reduce phosphorus levels in the ore, no material adverse changes, and all necessary Nigerian and Chinese regulatory approvals. The transaction must be completed within 120 calendar days, extendable by 40 days if government approvals remain pending.

Legacy Investment and Intellectual Property

Macro Metals has invested more than a decade and significant capital into advancing the Agbaja Project. This includes extensive exploration, resource drilling, pre-feasibility studies, environmental and social impact assessments, trial mining, and a metallurgical research program that developed proprietary oxygen injection technology to reduce phosphorus in the ore to steel-grade levels.

The retention and transfer of these intellectual property rights form a key condition of the sale, reflecting the technical value embedded in the project beyond mineral resources alone. This technology underpins the project’s potential to produce acceptable quality steel products, adding a layer of complexity to the transaction.

Financial Impact and Strategic Implications

The agreed purchase price of US$5.67 million translates to roughly A$8.0 million before costs, based on the current exchange rate of US$0.71 to A$1.00. After estimated transaction costs, all success-based and paid to unrelated third parties, Macro expects to receive about A$4.6 million at completion and a further A$0.5 million upon release of the holdback a year later.

The divestment is a clear signal of Macro’s intent to streamline its portfolio and sharpen its focus on more immediate growth opportunities in Western Australia. This follows recent moves to expand its Pilbara footprint and secure mining services contracts, positioning the company for a more concentrated operational strategy.

While the term sheet is non-binding and subject to multiple conditions precedent, the framework provides a roadmap for Macro to exit a long-held asset and recycle capital into its core competencies.