Gold and nickel explorer Aldoro Resources (ASX: ARN) has announced the welcome addition of internationally-renowned geologist Dr Minlu Fu to its Narndee team as a technical advisor for the Western Australian nickel and platinum group elements (PGE) project.
The company today told shareholders it has entered into a consultancy agreement with Dr Fu’s company, Hong Kong Ausino Investment Limited (Ausino) for the provision of equipment and services for the Narndee project.
Further to this involvement in the project, Dr Fu and his Ausino associates have committed to invest $2 million in Aldoro via a share placement, bolstering the company’s cash reserves to around $4.2 million.
Aldoro chairman Josh Letcher said Dr Fu’s geological and geophysical expertise will be “invaluable” as the company moves towards its maiden nickel-PGE drilling program this quarter.
“Furthermore, we welcome Dr Fu’s cornerstone investment into the company as a significant show of faith into the Narndee nickel-PGE project’s prospectivity and Aldoro’s methodical de-risking efforts prior to drilling the largest mafic-ultramafic complex in Australia,” he added.
Exploration track record includes discoveries made by Tietto Minerals and Los Cerros
Dr Fu received his PhD from La Trobe University in 1989 and worked for Western Mining Corporation in both Australia and China as a research geologist, senior research geologist and exploration manager until 2000. WMC was eventually taken over by BHP (ASX: BHP) in 2005.
His significant maiden exploration success includes the West Musgrave nickel deposit in WA, the Tampakan copper gold deposit in the Philippines, and the Ernest Henry copper-gold deposit in Queensland – notably one of Australia’s largest, long-life, low-cost copper-gold projects.
In addition to Dr Fu’s technical involvement with Los Cerros (ASX: LCL) and Tietto Minerals (ASX: TIE), he has been instrumental in the discovery of the Jinxi-Yelmand epithermal gold deposit, the Huangtupo volcanogenic massive sulphide (VMS) copper-zinc-gold-silver deposit, the Jinhe copper-gold deposit, the South copper-gold deposit and the Huangtan volcanogenic gold deposit, all of which are based in China’s Xinjiang region.
$2m investment will make Dr Fu one of Aldoro’s largest shareholders
In conjunction with entering this consultancy agreement, Aldoro has agreed to conduct a $2 million placement of 10 million shares at an issue price of $0.20 each to Dr Fu and his associates.
This issue price represents a 2.4% discount to the 10-day volume weighted average price of Aldoro shares.
Aldoro chairman Joshua Letcher and non-executive directors Lincoln Ho and Troy Flannery will also seek shareholder approval for participation in this placement of $20,000 each to raise $60,000.
Aldoro plans to use the funds to progress additional technical de-risking, which encompasses gradient array, additional ground truthing/induced polarisation (IP) surveying and drilling at Narndee, as well as for working capital.
Upon completion of the placement, Dr Fu will join the Pioneer Development Fund (Australia) Limited and the Narndee nickel-PGE project vendors as the Aldoro’s largest shareholders.
Last month, Aldoro expanded the Narndee nickel-PGE project with the addition of the 192sq km Windmurra tenement.
It also kicked off a fixed loop electromagnetic (FLTEM) survey to refine Narndee drill targets.