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Both companies previously agreed that the acquisition had the potential to generate up to $8 million in royalty revenue.
Having exercised the option, Pure will acquire the royalty over CSM sales from the Tipton West gas field and associated permits – ATP’s 683, 689 and PL198.
Pure said it would pay for the interest with funds from a recent $5.25 million share placement, the remainder of which would help accelerate the appraisal and development of its Bowen Basin tenements and be used as general working capital.
The company is proceeding with a share purchase plan to raise a further $2 million.
Tipton West is operated by Arrow, which is a cornerstone investor and major shareholder in Pure and has a 60% stake, while Beach Petroleum holds the remaining 40%.
