Perth-based explorer Belararox (ASX:BRX) is preparing to complete the acquisition of the Toro-Malambo-Tambo (TMT) Base Metal Project in the San Juan Province of Argentina.
The company received shareholder approval for the acquisition of unlisted Australian company Fomo Ventures No 1, which owns TMT, at a general meeting on 27 April 2023. Following the settlement of the deal, Belararox will acquire all the shares in Fomo. Fomo’s Argentinian subsidiary, GWK Minerals, is the registered holder of all 14 tenements that make up the TMT Project.
Under the agreement, Belararox will issue to the seller 2.5 million BRX shares, subject to a 12-month escrow period, 1 million options with an exercise price of $0.95 that expire on 6 June 2023, and 10.5 million performance shares.
Of these performance shares, 2.5 million will be issued in stage 1 upon achieving a drill intersection of at least 30m @ 1% zinc equivalent (Zn-Eq), and 4 million will be issued in stage 2 upon Belararox achieving a JORC-compliant inferred resource of at least 25 million tonnes or over 1% Zn-Eq @ a 0.80% Zn-Eq cut-off.
Additionally, stage 3 will see 4 million shares issued once a JORC-compliant inferred resource of at least 50 million tonnes or over 0.5% Cu-Au-Eq @ a 0.30% Cu-Au-Eq cut-off is achieved.
Belararox will grant Fomo a 1% net smelter royalty (NSR) in respect of each of the tenements and will also have the option to buy back 50% of the NSR for US$2 million. The company will also be able to buy back the remaining 50% by paying a further US$5 million.
Meanwhile, under a services agreement, Belararox will issue Condor Prospecting about 3 million shares, escrowed until 30 June 2024, in lieu of the exploration and marketing services to be provided by Condor. The company also reports it will assume Fomo’s obligations under 2 option agreements relating to the acquisition of TMT.
Commenting on the acquisition, Belararox Managing Director Arvind Misra says: “We are delighted to finalise the acquisition of Fomo Ventures No 1 together with its rights to the exciting TMT Project in Argentina.
“The acquisition enables BRX to pursue exploration activities in a highly prospective region in Argentina in partnership with an experienced and highly regarded team led by Jason Ward, a renowned geologist”
The acquisition enables BRX to pursue exploration activities in a highly prospective region in Argentina in partnership with an experienced and highly regarded team led by Jason Ward, a renowned geologist.”
Since securing the rights to acquire TMT in January 2023, Belararox has secured and registered over 32,000 hectares of land, registered all tenements transferred to GWK Minerals with the San Juan mines department, completed a desktop review of historical data, and conducted a technical due diligence expedition to validate historical information.
Other activities completed by the company at TMT include a field trip in February 2023 to assess the condition of the access track and historical campsite, a second field trip in mid-April 2023 to assess the project’s northern access track, the submission of 9 environmental impact assessments for the whole project, and the engaging of exploration geologist Steve Garwin to process, interpret, and report on Sentinel-2 and Aster geophysical imagery.
Belararox is an Australian mineral explorer focused on securing and developing resources to meet the demand from the technology, battery, and renewable energy sectors across its portfolio of projects prospective for zinc, copper, gold, silver, and lead.
The company’s flagship Belara project lies about 50km southeast of Dubbo in New South Wales, which hosts an inferred mineral resource of 5 million tonnes @ 3.41% Zn-Eq and 2 historical mines where mineralisation is yet to be constrained along strike and at depth.
In addition to the TMT Project in Argentina, the company also holds the Bullabulling Project that covers 49km-square in the Eastern Goldfields region of Western Australia. This project is considered prospective for gold and lithium.
Images: Belararox Ltd
