Metalicity picks up more hot exploration ground – this time in the Fraser Range
Link copied to
Metalicity is continuing its buying spree for ground in hot exploration spots, having now secured nickel and copper projects in the well-known Fraser Range region of Western Australia.
Today’s news follows close on the heels of revelations that Metalicity (ASX:MCT) had picked up ground in the red hot Paterson province — the location of a rumoured big copper discovery by mining heavyweight Rio Tinto.
The Fraser Range, meanwhile, shot to fame back in 2012 when Sirius uncovered the Nova-Bollinger nickel, copper and cobalt mine, which eventually earned the company’s backers the very large sum of $1.8 billion.
Metalicity boss Matt Gauci said the Fraser Range “ranks highly” on the company’s list of prospective geological terrains for the discovery of nickel and copper.
“We are encouraged by the continued discoveries by other companies nearby which supports our prospectivity models,” he told investors this morning.
Although Metalicity didn’t enjoy quite the same share price kick it got after it announced it was picking up ground in the Paterson, shares were up nearly 12 per cent to an intra-day high of 1.9c.
The company has inked agreements to acquire the Fraser Range and Biranup projects, which span 636 sq km of the Albany Fraser Belt.
The Fraser Range project lies within 20km of the Silver Knight nickel and copper deposit recently discovered by well-known prospector Mark Creasy and within 10km of the operational Nova-Bollinger mine that is now owned by Independence Group (ASX:IGO).
The Biranup project, meanwhile, is located within 20km of Independence and AngloGold Ashanti’s Tropicana gold deposit.
Metalicity will hand over an initial $40,000 to secure a three-month option for each of the projects.
It can then buy the Fraser Range project from Romany Minerals for $250,000 cash or shares.
The Biranup project, however, is subject to an earn-in with Ventnor Resources (ASX:VRX). Metalicity can earn up to 80 per cent of the project in three stages by spending $2.5m and forming a joint venture.
Metalicity is in the process of selling its zinc and lithium projects in WA. It is mulling all its options, including a possible spinout, joint venture or trade sale.
Completion of the transactions are expected in the December quarter of this year and March quarter of next year.
Stockhead is seeking comment.