MinRex plays for territory in highly prospective NSW region
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Special Report: Exploration-focused MinRex Resources has picked up ground in the highly prospective East Lachlan Fold Belt in New South Wales, announcing the acquisition of a series of projects in the region.
MinRex Resources Limited (ASX:MRR) shareholders have approved the acquisition of four project areas, farm-in rights to an additional two project areas, and enter a nine-month option from Argent Minerals Limited (ASX:ARD) to acquire Argent’s farm-in rights in the exploration area of the Sunny Corner project.
In all, the ground covers~480Km2 across seven mining authorities strategically located in close proximity to major and mid-cap miners including Freeport-McMoRan, Alkane Resources (ASX:ALK), Newcrest Mining (ASX:NCM), Evolution Mining (ASX:EVN), FMG Resources and Sandfire Resources (ASX:SFR).
MinRex will acquire 100% of NSW mining authorities ELA5954, ELA5986, ELA6142 and EL8976; a farm-in option to earn up to 80% interest in EL7974 and EL7423; and the option to secure a 90% interest in the exploration area of EL5964 – Sunny Corner.
The tenements are grouped into four project areas – Mt Pleasant (EL5954), Sofala (EL7423 and EL7974), First Find (EL8976) and Sunny Corner (Sunny Corner North: EL5964 and ELA5986; Sunny Corner South: ELA6142) and include the following historical drilling results
MinRex said in a statement to market that the projects are highly prospective for both gold-rich, alkali gold-copper porphyry mineralisation and paleo-placer gold mineralisation.
The ground will be acquired in exchange for $420,000 worth of cash, up to 252.5 million shares (including up to 80 million shares to be issued pending a decision on Sunny Corner) and a 2% net smelter royalty on all mineral production for the projects.
The projects have added to MinRex’s portfolio of Western Australian gold assets, in a move billed by the Company as “diversifying its exploration activities into two world class jurisdictions and exploration areas”.
The project acquisition was conditional on a number of conditions precedent, including MinRex shareholder approval which has been received.
In addition to its project acquisitions, MinRex will soon complete a pre-cost placement of $2.9 million to sophisticated and professional investors.
The cash will be used to fund the consideration due at the completion of the acquisition of the East Lachlan Fold Belt projects, for exploration and development activities under the Company’s initial farm-in obligations including those at Sunny Corner, and for general working capital.
The placement involves the issue of 145 million shares at 2c per share, with a 1:2 free attaching option exercisable at 4c on or before April 8, 2023.
MinRex’s cash in bank position post completion of acquisitions and placement will be over $3 million
MinRex adds the East Lachlan Fold Belt projects to its existing portfolio of highly prospective ground in Western Australia which includes Deflector Extended project east of Geraldton. This project sits 4km along strike from Silver Lake Resources’ (ASX: SLR) Deflector copper-gold mine where copper-gold occurs as high-grade lode mineralisation, associated with abundant disseminated to massive sulphide mineral bearing veins, in shear zones of meta basalt.
The project is home to several strike extensive conductors, with targets identified and follow-up on-ground geophysical work due in the latter parts of 2020.
That territory also covers its 70%-owned East Pilbara projects – the Daltons, Bamboo Creek, and Marble Bar North and South gold projects where exploration activity is currently ongoing.
This article was developed in collaboration with MinRex Resources, 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.