Antipa Minerals has agreed to divest its 32% non-controlling stake in the Citadel JV project to its partner Rio Tinto for A$17m ($11.37m) in cash.

The Citadel JV, formed in 2015 between Rio Tinto Exploration and Antipa, covers 1,200km² in Western Australia's Paterson province.

This project's mineral resource estimate totals 127 million tonnes (mt) with significant gold, copper and silver deposits.

Rio Tinto has invested more than A$47m in exploration, earning a 68% interest, while Antipa's stake has recently been diluted from 35% to 32%.

Antipa's divestment of its interest in Citadel is expected to be completed by November 2024, subject to formal agreements and deeds with Native Title parties.

The A$17m cash consideration will be paid in full upon completion, with no tax liabilities anticipated for Antipa.

The proceeds from the sale will enable Antipa to focus on its Minyari Dome Project in Australia, where it plans to apply the funds towards drilling programmes and development appraisal activities.

Antipa managing director Roger Mason said: “We are very pleased to have signed a binding term sheet with long-standing Citadel joint venture partner, Rio Tinto.

“The sale of our minority, non-controlling, interest in the Citadel Project, which was a non-core asset for Antipa, liberates cash, providing an extremely solid financial foundation from which to accelerate the development of our flagship, wholly owned Minyari Dome Project.

“Rio Tinto was the natural buyer for Citadel, and the A$17m all-cash consideration fully reflects current value of our interest in the asset, positioning us to focus on unlocking the full potential at Minyari Dome.”

Antipa expects the proceeds from the transaction to bolster its cash reserves to A$23m.