Revolver Resources exercises option deed to purchase Dianne copper tenements from Great Southern Mining
Revolver managing director Pat Williams says the maiden resource estimate enables a dual-track approach to unlocking early value at Dianne.
Revolver Resources Holdings (ASX: RRR) has executed an option deed with Great Southern Mining (ASX: GSN) for the acquisition of two exploration permits surrounding Revolver’s flagship Dianne copper project in far north Queensland.
The option deed was secured in July and will increase Revolver’s contiguous tenement holdings at the high-grade project from 118 square kilometres to over 500sq km.
Both tenements have not been subject to modern exploration techniques.
They will adjoin existing exploration ground at Dianne and lie directly in line with a highly-prospective regional trend announced by Revolver last month.
High-priority anomalies
Revolver executive chairman Paul McKenna said the acquisition substantially increases the acreage available for the company to continue its exploration with the aim of identifying additional high-priority anomalies.
“The addition of these new permits is a very strategic milestone for us,” he said.
“Our technical team has identified a significant regional trend passing across the existing Dianne exploration ground and we have recently outlined a number of high-priority drill targets which we are already pursuing along this high strain corridor.”
Terms of the deed
Under the terms of the option deed, Revolver paid an initial $100,000 fee to Great Southern for the right to conduct exploration on the new tenements.
Payment also gave Revolver the right to exercise the option for a period of up to 12 months from signing.
Following the transfer of the tenements by Great Southern into newly-created subsidiary Mt Bennett Exploration, Great Southern exercised a put option which triggered the acquisition process.
Consideration for the tenements consisted of a further $150,000 cash and $750,000 in Revolver shares.
Great Southern said it would undertake a voluntary escrow for 12 months upon issue of the shares.
Fast moving and exciting
Mr McKenna said the new permits herald the beginning of a “fast moving and exciting” period of growth for Revolver.
“We have demonstrated through this transaction that we have the operational capability and discipline to undertake field exploration, and the strategic insight to accelerate our company growth via acquisition,” he said.
“This additional exploration ground adds a significant expanded runway to the ongoing success of Queensland’s next big potential copper discovery at Dianne.”