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Buxton Resources moved ahead 16 per cent this morning after the diversified explorer agreed to buy a project next to its “Merlin” nickel and copper prospect in the West Kimberley region of Western Australia.

Buxton (ASX:BUX) shares gained 2c to an intraday high of 14.5c in morning trade. They’ve fluctuated between 10c and 21.5c over the past year.

Buxton will take over New World Cobalt’s (ASX:NWC) “West Kimberley” project, which includes a continuation of the same type of rock composition as Merlin.

This means it is considered highly prospective for nickel, copper and cobalt, Buxton told investors.

New World said the sale of West Kimberley meant the explorer retained exposure to any future exploration success and allowed it to focus on its high‐grade cobalt projects in North America.

The Buxton (ASX:BUX) share price over the past 12 months.
The Buxton (ASX:BUX) share price over the past 12 months.

Payment included about 1.3 million Buxton shares on completion of the deal, and then up to $1 million worth of shares if Buxton hit a number of milestones, such as establishing a JORC complaint resource.

Buxton had $1.65m in cash and cash equivalents at the end of September.