Oakdale Resources (ASX: OAR) has emerged from a trading halt this morning with news it is acquiring the Crown project which is close to Chalice Gold Mines’ (ASX: CHN) Julimar complex in Western Australia’s Yilgarn Craton.
The project is believed prospective for platinum group elements, copper and nickel and encompasses 93 square kilometres of exploration licences in the region.
According to Oakdale, Crown hosts an extensive network of magnetic structures similar to those seen at Julimar which is 8km away.
Earlier this month, Chalice confirmed it had made a “significant” nickel and PGM discovery at Julimar.
Results from the first 80m of a new hole returned 41m at 2.6 grams per tonne palladium, 0.4g/t platinum, 0.5% nickel, 0.4% copper and 0.03% cobalt from a depth of 39m.
Within that was 31m at 3.3g/t palladium, 0.5g/t platinum, 0.7% nickel, 0.5% copper and 0.04% cobalt from 40m.
The result followed on from the first intersection at the project which unearthed 19m at 2.59% nickel, 1.04% copper, 8.37g/t palladium and 1.11g/t platinum, including 13m at 3.15% nickel, 1.19% copper, 8.85g/t palladium and 1.09g/t platinum.
Extending into Crown
Oakdale noted the Chalice’s broad nickel, copper and PGM intervals remained open all directions and point to an extensive regional discovery.
It is believed Crown has the potential to host an extension or a repeat of Chalice’s Julimar discovery.
Oakdale will acquire Crown by purchased all the issued capital in the project’s holder Australian Precious Metals.
The project’s exploration licence is currently under application and due to be approved within 12 weeks.
Upon securing shareholder approval, Oakdale will issue Australian Precious Metals’ vendors 35 million shares. This will be followed by the issue of 27 million shares once the exploration licence has been granted.
A further 27 million Oakdale shares will then be issued once its receives approval from the WA Mines Department to undertake a drilling program.
To top up its cash reserves, Oakdale will raise $140,329 via the placement of 70.16 million shares at $0.002 – with one free attaching listed option for every two shares subscribed.
The options have an expiry of 31 December 2021 with an $0.04 exercise price.
Oakdale also plans to undertake a rights issue on the same terms as the placement. The final details will be announced in “due course”.
“This acquisition is exceptional value and puts Oakdale well and truly in strike of a significant platinum group element, nickel, copper, gold project, given the location and geological setting in the Yilgarn,” Oakdale executive chairman Chris Gale said.
“This is rich ground and we expect there will be multiple targets to uncover,” he added.
Once Oakdale has received the exploration permit, it will carry out airborne and geochemical exploration, while negotiating access with landowners.
Drilling is planned to begin once permits have been received.
By early afternoon trade, Oakdale’s share price was flat at $0.003.