Antares Metals (ASX:AM5) has entered into binding tenement purchase agreements to acquire the Quinns and Katanning gold and copper projects in Western Australia.
Under the agreement with privately held Kilonova Metals, Antares will pay $50,000 cash, issue 75 million shares and 25 million unquoted options exercisable at $0.02 within three years.
Under the agreement with CNN TPA – which owns part of the Quinns Project – Antares will pay $100,000 cash, as well as issue 12.5 million shares and 4.16 million unquoted options exercisable under the same price as the Kilonova deal.
The company will also grant the vendors a 1% net smelter return royalty over minerals produced from the CNN tenements.
Both transactions are subject to completing due diligence and obtaining all necessary approvals.
Antares has also secured commitments to raise $2 million via a two-tranche placement. The company will issue 250 million shares at $0.008 per share, representing an 11.1% discount to the last closing price of $0.009.
Placement participants will also be issued one free-attaching unquoted option for every two new shares subscribed for and issued. The options will be exercisable at $0.020 each on or before 31 January 2029.
Discovery Capital Partners and Cumulus Wealth acted as joint lead managers to the placement.
Subject to completion of the acquisitions, Terence Topping will be appointed as Managing Director of Antares Metals.
The Quinns Project is an under-explored historical goldfields covering 20km of prospective geological strike and comprising extensive historical workings, nuggets and soil anomalism.
The Katanning Gold Project comprises 130km2 of contiguous, granted tenure strategically located along strike from Ausgold’s (ASX:AUC) 2.44 million ounce Katanning Project.
Katanning covers clear geological structures that indicate extensions of gold potential – limited historical exploration has been completed including no previous reverse circulation or diamond drilling.
Write to Aaliyah Rogan at Mining.com.au
Images: Antares Metals
