Terra Uranium moves into base metals with acquisition of high-grade tin-silver-gold projects in NSW

Terra Uranium (ASX: T92) will take ownership of two high-grade exploration licences in the New England region of New South Wales via its proposed acquisition of private company LCT Metals.

The licences house the historic Ottery tin mine, the Castle Rag silver project and the Mole River silver-tin project and will enable Terra to expand its exploration strategy beyond uranium for the first time.

The company will retain its projects in Canada’s Athabasca Basin, which have been hailed as integral to taking advantage of an anticipated recovery in uranium prices.

Expanded strategy

Executive chair Andrew Vigar said the acquisition signified a turning point for Terra.

“Terra’s exploration strategy has now been expanded from just uranium to tin, silver and gold in Australia,” he said.

“While we will retain our valuable Canadian uranium assets, we have taken the option to make an acquisition in the prolific New England tin-silver-antimony-gold province.”

“It is an exciting time for our company and we look forward to keeping shareholders informed of our progress at these new targets.”

Acquisition terms

Terra will issue LCT Metals with 2.44 million ordinary shares plus 1.22 million unlisted options at an exercise price of $0.09 each, expiring in December 2026.

The consideration shares will be subject to voluntary lock-up periods of 25% for three months, 25% for six months and 50% for 12 months.

Terra will also pay LCT Metals $40,000 in cash, comprising $20,000 as reimbursement for two refundable security deposits of $10,000 each.

Largest tin producer

The Ottery mine has been the largest historic hard-rock tin producer in the New England region, producing around 2,700 tonnes of tin oxide at an average grade of 2% during its lifetime.

The mineralisation occurs in a series of five lodes hosted by an intrusive porphyry unit, surrounded by wide hydrothermal alteration zones.

The Ottery tenement abuts the Taronga tin project owned by Metals X (ASX: MLX) subsidiary First Tin that BHP Group (ASX: BHP) and Newmont explored and developed towards a pre-feasibility study in the 1980s.

Taronga is 10 kilometres from Ottery and has a current resource of 23.2 million tonnes grading 0.16% tin.

High-grade samples

The Castle Rag project encompasses a strike of over 7km in length and contains deposits at Castle Rag, Watt & Walkers, Southside Hill, McDonalds, Gilligans and Sully & Gilligans.

Historical high-grade surface samples include 1,670 grams per tonne silver, along with 445g/t silver and 1.12% copper, while a rock chip sample collected 247m north of the Castle Rag boundary graded 15.2% copper, 0.59% lead and 3.98% zinc.

Mole River is prospective for silver-rich polymetallic mineralisation, as demonstrated by numerous documented mineral occurrences across a potential 13km of strike.

It contains more than 24 outcrops grading more than 30g/t silver with associated lead and zinc, as well as a separate tin zone with samples grading 64% tin, 12% tin, 5.21% tin and 3% tin oxide below 15m in shafts.

Share placement

Terra has received firm commitments from a number of sophisticated investors to raise $500,000 before costs by way of a placement priced at $0.04 per share.

The company will issue a total of 12.5 million shares plus one free unquoted option for each new share and use the proceeds to fund the acquisition of LCT Metals and ongoing costs at the new exploration licences.

Terra has appointed Peak Asset Management and GBA Capital as joint lead managers to the placement.