Marquee Resources snaps up US lithium, copper projects, adds to diversified portfolio
Marquee Resources chairman Charles Thomas describes the lithium and copper-gold project acquisitions as “transformational” for the company.
Investors piled into Marquee Resources (ASX: MQR) on Friday, sending the stock up 33% in early trade on news of two key acquisitions in the western US states of Nevada and Washington.
The company will acquire the Kibby Basin lithium project in Nevada and the Lone Star copper-gold mine in Washington state, referring to both as being “future metals”.
Since listing in 2017, Marquee has built a diverse portfolio spanning Australia, the US, Canada and Argentina.
These include the West Spargoville nickel-gold target south of Kalgoorlie, the Redlings rare earths project near Leonora, the Clayton Valley lithium brine project in Nevada, Werner Lake in Ontario for cobalt, and the Centenario lithium project in Argentina.
Acquisitions ‘transformational’ for Marquee
Marquee executive chairman Charles Thomas describes the two new acquisitions as “transformational” for the company, further strengthening its position.
Kibby Basin is a full permitted, drill ready project with potential for “large scale brine and clay lithium deposits”.
“Not only is the Kibby Basin lithium project already permitted for drilling but, more importantly, it is fully permitted for water extraction for brine processing and production of lithium compounds,” Mr Thomas added.
Drilling will begin in the first quarter of 2022.
This project is located 50km north of the Rhyolite Ridge lithium-boron deposit, the flagship project for Ioneer Limited (ASX: INR), where South African platinum and palladium major Sibanye-Stillwater is contributing US$490 million for a 50% joint venture interest.
Lone Star comes with permit to drill
Lone Star in Washington state is an historic mine, where a 2007 mineral estimate stated a resource of 15,090 tonnes of contained copper and 212,500 ounces of gold, across both indicated and inferred categories.
That estimate was based on gold at US$593/oz and copper at US$6,250/t.
Marquee says the deposit is situated on a 3km-long mineralised trend which has hosted several “significant” historic copper-gold mines.
A drill permit is at hand and a contractor has already been hired for a 5,000m campaign.
Acquisition terms
The acquisitions will be backed by $3 million in loan commitments, convertible to shares in Marquee at $0.08 per share, with free attaching options.
Marquee is to acquire 80% of each project from the vendor, Toronto Venture exchange list Belmont Resources, which specialises in acquiring historic mines and reviving them.
The terms for Kibby include a 15-month earn-in period, cash payment of C$100,000, C$2.55 million in spending and up to 3 million Marquee shares.
For Lone Star, the terms are a 24-month earn-in period with payment of C$250,000 in cash, C$2.55 million in exploration spending and up to 3 million Marquee shares.