Resolution Minerals to acquire high-grade antimony-gold-copper projects in NSW and Queensland
Resolution Minerals (ASX: RML) has acquired three highly prospective antimony, gold and copper projects on Australia’s eastern seaboard from private explorer Devil Prospecting.
The deal includes four exploration tenements across the Drake East antimony-gold and Spur South gold-copper projects in New South Wales and the Neardie antimony project in Queensland.
The company believes the three projects, which cover a total area of 194 square kilometres, represent exceptional value and strategic exposure with strong gold-copper upside.
Historical production
Drake East and Neardie are brownfield assets with historical antimony production that signify a low-cost entry for Resolution into the critical metals sector.
Drake East hosts 14 known antimony occurrences – including the Mosquito Creek reef and Ball & Smiths lode – and over 50 known gold occurrences, including a placer gold resource at the Lanikai West target.
Neardie includes three historical mines with very high-grade mineralisation, including peak values of 19.5% antimony.
Spur South is located in the Macquarie Arc region of NSW and hosts a large magnetic anomaly of a scale and potential similar to the magnetic signatures of mineralised systems in the area.
Share consideration
Under the terms of the acquisition, Resolution will issue Devil with 25 million shares priced at $0.01 each in two equal tranches.
The first of these will take place at settlement and the second following the conclusion of the due diligence process.
Resolution will also pay Devil $70,000 in cash within the next 20 days.
Completion of the transaction is subject to the satisfaction of several conditions precedent.
High-potential assets
Resolution executive director Aharon Zaetz said the acquisition would allow the company to unlock value from underexplored, high-potential assets.
“It offers us a unique opportunity to broaden our multi-commodity exploration activities in two of Australia’s most promising and proven regions for antimony, gold, silver and copper,” he said.
“We have been able to secure these projects for a very attractive price, with the vendors agreeing to take the majority of their consideration in Resolution equity.”
“We are now poised to create substantial value for our shareholders and advance these projects toward their full potential.”