Blaze Minerals expands critical metals portfolio with proposed Gecko acquisition

Blaze Minerals (ASX: BLZ) is adding a pair of promising critical minerals projects to its portfolio with the proposed takeover of unlisted Australian explorer Gecko Minerals.

As part of the acquisition, Blaze will acquire a 60% interest in Gecko’s Ntungamo and Mityana projects in Uganda, with an option to acquire the remaining 40% within a two-year period.

Located in western and central Uganda, the projects are considered prospective for critical metals including beryllium, rubidium, lithium, tin and tantalite.

Critical metals focus

“This strategic acquisition is consistent with our focus on critical metals and provides near-term excitement for our shareholders, with all preliminary exploration work and regulatory approvals in place in support of a maiden drilling program,” Blaze corporate director Mathew Walker said.

“Following completion of the transaction, we will immediately commence discussions with potential drilling contractors.”

The Ntungamo project (which has three granted exploration licences) adjoins Uganda’s largest producing tin mine at Mwirasandu, while Mityana (one) covers an area of 240 square kilometres and immediately surrounds a historical open-cut tantalite mine that was closed in 2021.

The new projects will be added to Blaze’s existing portfolio, which features two exploration licences at its Kirkalocka project in Western Australia’s Gascoyne region.

Experienced team

Gecko director and African specialist Mark Gasson has agreed to oversee technical exploration activities, led by experienced South African geologist Dylan le Roux and Gecko Uganda director Allan Agumya.

“I am delighted at the prospect of working with the team at Blaze and, along with my in-country colleagues Dylan and Allan, look forward to the design and execution of the drilling program following the successful completion of the transaction,” Mr Gasson said.

“I view both project areas as having the potential to host world-class strategic mineral deposits in a largely underexplored regional setting.”

Transaction terms

The deal will see Blaze issue Gecko with 625 million of its fully paid ordinary shares.

Upon settlement of the transaction and subject to approval by Gecko shareholders, Gecko will then carry out a pro-rata in-specie distribution of 520 million Blaze shares to its shareholders at a ratio of ten Blaze shares for every Gecko share held.

Gecko will retain the remaining 105 million Blaze shares.