Alma Metals eyes two new permits next door to Briggs copper project

Alma Metals to acquire two EPMs next to the Briggs copper JV project in Queensland
The acquisition cost will form part of ALM’s earn-in expenditure for the project
Assays from drilling last year still pending, with a resource update also planned

Special Report: Alma Metals is acquiring two Exploration Permit for Minerals (EPM) from Tropex Metals which are adjacent to its Briggs copper project in Queensland.

Exploration at Briggs is being funded by the company under an earn-in joint venture agreement. Alma Metals (ASX:ALM) currently has a 30% JV interest and can earn up to a 70% interest from owner Canterbury Resources (ASX: CBY) via a staged earn-in.

Last year, an inferred mineral resource of 415Mt at 0.25% copper and 31ppm molybdenum was defined at Briggs.

That’s ~1Mt of contained copper and +28.6Mlb of molybdenum which puts it amongst the Top-10 largest undeveloped copper projects in Australia.

The two new EPMs will become part of the Briggs, Mannersley and Fig Tree Hill JV, with the cost of acquisition to form part of ALM’s earn-in expenditure.

Alma Metals ASX ALM — Location of the two EPM’s to be acquired and the existing Briggs, Mannersley and Fig Tree Hill EPMs overlain on a total magnetic intensity map of the region. Source: ALM

Terms of the deal

Once the deal is completed, ALM will issue $50,000 worth of ordinary shares to Tropex based on a 10-day VWAP calculated on the day binding transaction documents are executed. These shares will be escrowed for six months.

Tropex will also be entitled to receive a 1% net smelter royalty on mineral production from the two EPMs, capped to a maximum total of $7.5m.

In the meantime, ALM expects assays from its December drilling program at Briggs to arrive in mid-Q1, with follow-up drilling to kick-off shortly thereafter.

Then, a resource update could be on the cards to support a scoping study at the project.

This article was developed in collaboration with Alma Metals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.