Key highlights

• Macro Metals has signed a binding share purchase agreement to sell its Agbaja iron ore project in Nigeria for US$5.67 million.

• The sale is worth about A$8.1 million, with completion expected on 7 December 2026, subject to conditions.

• This update covers how the proceeds could be redeployed and the risks to completion, including Yandi South.

Macro Metals (ASX:M4M) has signed a binding share purchase agreement to sell its Agbaja Iron Ore Project in Nigeria for US$5.67 million, or about A$8.1 million. The company announced the deal to the ASX on 2 November and expects completion on 7 December 2026.

Macro and its Wholly Owned Subsidiary KCM Mining Holdings will sell 100% of the project owner, KCM Mining, to RSIN.SG, part of the Nigeria-focused RSIN Group. The price is set on a cash-free, debt-free, locked-box basis, meaning it is fixed by reference to an earlier Balance Sheet rather than adjusted at completion.

What Macro expects to receive

Using an Exchange Rate of US$0.70 to A$1.00, Macro expects net proceeds of about A$5.25 million after estimated transaction costs. That is well below the headline A$8.1 million because of costs and the payment structure.

The buyer must deposit a US$700,000 downpayment into Escrow by 7 November. Macro expects to receive US$5.32 million at completion, while US$350,000 will be held back for 12 months as warranty security. The holdback means part of the price depends on no warranty claims arising during that period.

The conditions

The downpayment is non-refundable unless transfer documents Fail to be delivered, a material adverse change occurs, or confirmatory drilling of up to six holes records iron grades at least 5% below historical results.

That drilling condition is notable. It gives the buyer an exit if the deposit's grades do not match historical data, so the outcome of those holes matters to whether the deal completes. Other conditions include assignment of intellectual property, a five-year extension of a community development agreement, and Nigerian regulatory clearance.

Managing director Simon Rushton said a limited set of conditions must be satisfied or waived over the next five weeks, and that he was confident completion would be achieved as scheduled. That is the company's expectation.

Redeploying the money

After completion, Macro expects to hold about A$7.7 million in cash and equivalents. The funds would support pre-production commitments and mineral resource estimate drilling at its Yandi South Iron Ore Project in Western Australia, as well as drilling at its Mogul and Gibraltar East projects.

The answer to the headline question, therefore, is a shift from an offshore asset towards Western Australian projects. The company also referred to a mining services division as part of its growth plans.

Why it matters

Selling a Nigerian project and focusing on Western Australia reduces jurisdictional complexity for a small company. Investors often apply a discount to Assets in jurisdictions perceived as higher risk, so simplifying the portfolio could make the company easier to value. On the other hand, the sale price is modest, and Macro gives up any future upside from Agbaja.

At that level, the expected proceeds are material to the company.

Risks to completion

Cross-border deals can be delayed by regulatory approvals and banking processes. The confirmatory drilling condition introduces technical risk, and the escrow deposit deadline of 7 November is an early test of the buyer's commitment.

What to watch

Investors may watch for confirmation that the downpayment has been paid, results of confirmatory drilling, regulatory clearance and completion on 7 December.

Yandi South in focus

The redeployment points to Yandi South as Macro's main growth asset. The project lies in the Pilbara, Australia's dominant iron ore region, where rail and port access often determines whether smaller deposits can be developed. Macro has referred to pre-production commitments and resource drilling there, which suggests it is preparing for a possible development decision. Investors will want to see a resource estimate and details of how ore would reach market before judging its prospects.