Altus Strategies said Thursday it had agreed to transfer the company's Birsok and Mandoum licences to Canyon and end the current joint venture, in exchange for shares and royalties.

Under the terms of the agreement, Altus would receive up to 30m new shares in Canyon and a royalty of US$1.5 a tonne on ore mined and sold from the Birsok project.

'Under this deal Altus will receive up to 30M Canyon shares plus a US$1.5/t royalty on our Birsok bauxite project, in return for the termination of the current joint venture agreement and transfer of a 100% interest in Birsok to Canyon. When combined with our existing holding of 8M shares, our combined holding of 38M Canyon shares, would have a notional current market value of approximately £3.9M / C$6.6M / A$7.2M,' said Steven Poulton, Chief Executive of Altus.

'Bauxite is the primary ore of aluminium, a lightweight metal which has substantial applications in the global drive for increased energy-efficiency. The Minim Martap and Birsok projects are potentially very substantial, having high grades, low impurities and being strategically located adjacent to an operating rail line that runs to the coast. We believe that significant potential exists for Canyon to fast track the mining and export of a premium grade bauxite product'.

At 10:03am: (LON:ALS) Altus Strategies Plc share price was 0p at 3.45p