Macro Metals secures binding sale of Agbaja for US$5.67 million

Binding Agbaja sale gives Macro a potential A$7.7 million cash base

Macro Metals Limited (ASX:M4M) has converted its proposed Nigerian exit into a binding transaction, agreeing to sell 100% of KCM Mining Limited, the owner of the Agbaja Iron Ore Project, for US$5.67 million. After transaction costs, Macro expects approximately A$5.25 million in net proceeds and about A$7.7 million of cash following completion.

The purchase price was set on a cash-free, debt-free locked-box basis using KCM’s management balance sheet at 30 June 2026. The buyer, RSIN.SG Pte. Ltd, is part of the RSIN Group, which the announcement says has operated mining, processing, smelting and steel manufacturing interests in Nigeria for almost two decades. The deal therefore hands Agbaja to a buyer with existing local industrial interests, rather than leaving Macro to continue funding the Nigerian asset from its Australian base.

The transaction is the formal next step after the August Agbaja sale term sheet, which outlined the same US$5.67 million headline consideration. RSIN must pay a non-refundable US$700,000 deposit into escrow by 7 November, subject to limited exceptions, while a further US$350,000 of the purchase price will remain in escrow for 12 months as security against warranty claims.

Completion still depends on Nigerian approvals and community agreement

Completion is scheduled for 7 December, but the agreement is not unconditional. Remaining conditions include regulatory approval for confirmatory drilling, ministerial sign-off on a five-year extension to KCM’s Community Development Agreement, delivery of intellectual-property transfer documents and confirmation that there is no material adverse change or outstanding litigation.

The Nigerian FCCPC must also approve the transaction, confirm that no merger notification is required, or be covered by a legal opinion that no filing is necessary. If the drilling approvals or FCCPC condition is not satisfied by the scheduled completion date, RSIN may extend completion by up to 40 calendar days. Macro says it expects the drilling approvals shortly and that the buyer’s advisers expect the competition condition to be satisfied before 7 December.

Sale proceeds to fund Western Australian growth

Macro says the divestment will allow it to focus on its Western Australian mining services and resource development businesses without raising fresh equity for the stated initiatives. Managing director Simon Rushton said the expected cash balance would support mining services growth, remaining payments for Yandi South, drilling aimed at establishing a maiden JORC 2012 resource there, and exploration at the Mogul VMS and Gibraltar East Gold projects.

That capital allocation matters because Macro recently reported mining services work performed of approximately A$2.8 million in the September quarter, while its quarter-end cash balance stood at just A$392,000 before a subsequent funding package. The Nigerian sale could materially change that liquidity position, although the proceeds remain dependent on completion, exchange rates and the eventual release of the warranty holdback.

The immediate test is execution rather than valuation: the deposit, drilling approvals, community agreement extension and FCCPC pathway all need to clear before the cash can be fully deployed. Even after settlement, the US$350,000 holdback will remain exposed to any properly established warranty claims for a year, leaving Macro with a stronger balance sheet but several near-term milestones between the agreement and the promised cash position.