Junior explorer Australasian Metals (ASX:A8G) is handballing its Fairview Gold Project in Western Australia to fellow ASX-listed Marquee Resources (ASX:MQR) in an all-scrip deal.
Under the terms of the tenement sale agreement, Marquee will issue Australasian Metals 6.5 million MQR shares, equating to around $250,000. On top of this, Australasian will also receive 6 million options with a $0.05 strike price and a 3-year expiry date.
Australasian Metals, which has a $9.9 million market capitalisation, says the divestment of the Fairview project allows it to focus its efforts on lithium exploration in the Northern Territory as well as its gold and bauxite/titanium projects in Queensland.
Commenting on the sale, Australasian Metals Managing Director Qingtao Zeng says the move is a ‘good outcome’ for the company.
“Marquee has a complementary suite of assets in Western Australia and has the team and resources to unlock the potential at Fairview.
“The equity-based consideration enables Australasian to retain exposure to potential value creation by Marquee at Fairview or across their other projects”
The equity-based consideration enables Australasian to retain exposure to potential value creation by Marquee at Fairview or across their other projects.”
At its Mt Peake project in the Northern Territory, Australasian has now received an Aboriginal Area Protection Authority (AAPA) grant for a diamond drilling program, together with the approval of a Mine Management Plan.
Further, the company recently banked just over $95,000 in grant funding under the Northern Territory’s Geophysics and Drilling Collaborations Program, meaning it’s ready to kick off drilling work before the end of the September quarter.
Australasian Metals says it plans to mobilise its team to the Mt Peake site after ground conditions improve following recent rains in the area.
Meanwhile, the company claims it has piqued the interest of multiple parties that are eyeing its lithium portfolio, though discussions around these assets are in their early stages and still ongoing.
The Fairview project adjoins Marquee’s Mt Clement Gold and Antimony Project and therefore further solidifies the company’s land position in the WA region.
Marquee says its exploration plans for the area will likely consist of detailed magnetics, geochemical sampling, and drilling work.
Australasian Metals is focused on the exploration of lithium, gold, and precious metals. Alongside Mt Peake, the company owns the May Queen and Mt Clermont gold projects and the recently-acquired May Queen South Bauxite/Titanium Project in Queensland, as well as a 90% interest in the Barrow Creek Lithium Project in the Northern Territory.
The company had $4.4 million cash at hand on 31 March 2023, according to its latest quarterly report.
Marquee Resources controls a string of gold, copper, rare earths, and lithium projects across Australia and North America.
Write to Joshua Smith at Mining.com.au
Images: Australasian Metals Ltd
