Black Canyon (ASX:BCA) is acquiring privately held Ndalamo Platinum which holds six key tenement applications located south and north of the Wandanya Manganese Project in Western Australia.
As a result, the Wandanya Project and across the Balfour Manganese Field will expand by 229km2.
Under the binding share sale agreement, Black Canyon will issue 2 million shares and two unlisted options exercisable at $0.14 with a three-year expiry date.
The transaction is subject to completing a 21-day due diligence period and the tenements being granted by 30 November 2025.
Managing Director Brendan Cummins says with a planned reverse circulation drilling program set to begin, the company has recognised the value in acquiring and further consolidating its ground position in the Pilbara.
“The acquisition includes two key applications for licences immediately south and north of the Wandanya discovery where the prospective manganese enriched stratigraphic horizon continues to outcrop onto the southern Ndalamo tenement for a further 300m to 400m,” Cummins says.
Black Canyon, which has a market capitalisation of $10.4 million, has mapped outcropping manganese mineralisation over 3km of strike at the project and expects to add a further 300-400m of strike.
This is expected to further enhance the scale potential of Wandanya’s manganese discovery.
At the Wandanya South tenement, several rock chip samples have been submitted for analysis from the manganese and iron rich outcrops. Assay results will be updated once they are received.
Further exploration is also required at the Nicholas Downs and Black Hills tenements to evaluate the multiple manganese occurrences. The results from the exploration work will be used to guide future programs.
Black Canyon is a manganese-focused explorer and developer with a project portfolio located in the Pilbara region of Western Australia.
Traditionally, manganese has been used in steel manufacturing with manganese alloys added to prevent corrosion, resist abrasion, and increase hardability. This consumes 90% of the manganese produced globally.
For example, for every tonne of steel produced, there is slightly less than 1% of manganese used.
According to the Department of Industry, Science and Resources (DISR), manganese currently makes up the largest portion of other critical mineral exports, though the approaching end of life of a major manganese mine is expected to see exports fall by the end of the outlook period.
Despite this forecasted drop, clean energy demand for manganese is expected to triple, as the battery mineral is a vital component for consumer battery applications and EV batteries.
Write to Aaliyah Rogan at Mining.com.au
Images: Black Canyon
