ASX-listed mineral explorer Belararox (ASX:BRX) reports it has signed a non-binding terms sheet with Fomo Ventures No1 to acquire the Toro-Malambo-Tambo (TMT) Project in Argentina.
The company says the signing of the non-binding terms sheet with Fomo brings it one step closer to acquiring the ‘extensive’ 32,000 hectares project, which is host to potential large-scale base metal mineralisation and untested porphyry targets within Argentina’s San Juan province.
It is reported that as part of the transaction Argentina-based and experienced exploration team Condor Prospecting, which is wholly owned by Fomo, will be responsible for the execution of the exploration programs of the TMT tenement.
Other key terms include the payment of US$100,000 from Belararox to Fomo via a non-refundable deposit of US$25,000 within 7 days of the execution date and another deposit of US$75,000 within 7 days of the execution of the share purchase agreement.
Speaking on the signing of the non-binding terms sheet, Belararox Managing Director, Arvind Misra says: “We are very enthusiastic about this acquisition. The project is located in the mining friendly province of San Juan in Argentina which has recently been rated by the Fraser Institute as the Number 1 Mining destination in Latin America.
“We are very enthusiastic about this acquisition”
I believe this acquisition both fits within our existing battery mineral strategy and will help bring our company to the next level.”
The company also notes that in consideration for the acquisition, Belararox will issue to Fomo 2.5 million fully paid ordinary shares in the capital of Belararox, which will be subject to a 12-month voluntary escrow period applicable from the date of issue of the shares.
In addition, about 1 million options with an exercise price of $0.95 and expiry date of 6 June 2024, as well as a total of 10.5 million performance shares and a 1% Net Smelter Royalty (NSR) will be issued to Fomo.
All terms included within the terms sheet are subject to several conditions’ precedent, including the completion of technical, financial, corporate and legal due diligence to the satisfaction of Belararox and the completion of a site visit by the Belararox technical team.
Belararox is a mineral explorer focused on securing and developing resources to meet the surge in demand from the technology, battery and renewable energy markets. The company is currently seeking to expand its mineral exploration portfolio into the San Juan province of Argentina, which is regarded as one of the most attractive mining jurisdictions of Latin America and is host to several renowned high-profile advanced copper-gold (Cu-Au) porphyry projects, including the TMT tenement.
The TMT tenement is located in Argentina’s Valle del Cura region within an under-explored gap between 2 world-class metallogenic belts, the El Indio and Maricunga belts in the Central Andes, and is expected to compliment Belararox’s existing portfolio of Australian zinc-copper (Zn-Cu) projects.
With the non-binding terms sheet now signed, Belararox announces it has moved forward with desktop studies and project planning in order to validate the information from previous reports, confirm potential of reported zinc mineralisation and review the porphyry targets.
Images: Belararox Ltd
