Albright Metals executes $1.8M Gabanintha transaction

• Albright Metals terminated its mineral rights sale agreement with Australian Vanadium to return the Gabanintha Project rights.
• The deal generates $1.8 million in cash and shares alongside a royalty transfer for Albright Metals.
• Proceeds from the transaction will fund exploration at Albright Metals' flagship Canadian gold project.

Albright Metals (ASX:ABR) entered a binding agreement to terminate its mineral rights contract at the Gabanintha Project, returning those rights to Australian Vanadium (ASX:AVL) for $1.8 million.

The agreement ends a 2017 deal that allowed Albright Metals to hold rights to secondary minerals at the site while Australian Vanadium retained vanadium, iron ore, and other strategic metals.

"This transaction provides positive benefits for both companies, with AVL gaining greater flexibility over the future development of its Australian Vanadium Project and Albright Metals able to monetise a non-core asset, with proceeds to be mainly used to progress our flagship Golden Pike Project in Canada," said Albright Metals CEO Greg Hill.

Total consideration comprises $500,000 in cash and $1.3 million in Australian Vanadium shares, plus the transfer of a 0.75% net smelter return royalty over the Tumblegum South Gold Project to Albright Metals.

The transaction fully extinguishes all remaining royalty and secondary mineral arrangements between the two resource firms at Gabanintha.

Following the announcement the Albright Metals share price was unchanged at $0.0020.

Albright Metals operates as an exploration entity focused primarily on advancing its Canadian gold interests.