Impact selling down Commonwealth to focus on battery and strategic metals in WA
Impact has reached an agreement to sell a 75% interest in its Commonwealth project in New South Wales to focus on its battery and strategic metals projects in WA.
Under the agreement, unrelated public company Burrendong Minerals has paid the company $25,000 for an eight week exclusivity period to complete a share purchase agreement and joint venture agreement which can be extended by Burrendong for another eight weeks with another $25,000 payment.
On execution of the SPA, Impact Minerals (ASX:IPT) will receive a non-refundable payment of $250,000.
Burrendong will then have nine months to complete a listing on the ASX following which Impact will receive a further $250,000 and a 19.9% interest in the newly listed company.
The Commonwealth gold-silver-base metals projects will then operate under an incorporated JV with Burrendong sole funding exploration until the earlier of the first $5m of expenditure or a decision to mine.
Impact shareholders will also be entitled to a priority right to subscribe for $3 million worth of shares.
“The sale of a 75% interest in our long-held Commonwealth Project in New South Wales is a very good outcome for the company and its shareholders,” Impact managing director Dr Mike Jones said.
“It allows us to continue our strategic change in focus to the large and prospective portfolio of battery and strategic metals projects in Western Australia which we have put together over the past 18 months.
In addition, it also gives Impact considerable exposure to the upside potential of the Commonwealth project into which we have invested financial and considerable intellectual capital.
“We continue to believe that the project has a great future and we look forward to working with Burrendong to move the project forward upon listing.”
The Commonwealth project covers over 500km2 of ground in the northern part of the Lachlan Fold Belt about 100km from Orange.
Work by Impact has shown Commonwealth to be a high sulphidation, gold-rich volcanogenic massive sulphide deposit, a deposit style only recognised in the past 25 years, and with striking similarities to the world class Eskay Creek VMS Deposit in Canada.
This also defined an Inferred resource of 88,000oz of gold and 3.3Moz of silver with significant zinc and lead credits which are all within 250m of surface, which makes it a potential open pit operation.
This article was developed in collaboration with Impact Minerals, 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.