Carnavale Resources Limited (ASX: CAV) announced that it has agreed to acquire 100% of the Barracuda Platinum-Palladium-Nickel-Copper (PGE-Ni-Cu) Project in Western Australia. The company also reported a $2.22M capital raise with firm commitments from CAV Directors, overseas, sophisticated, and professional investors.
The company noted that Barracuda is underexplored, with only 1,811m of drilling ever completed by Pancontinental Mining Ltd and no drilling since 1988, and has high-grade PGE mineralisation identified at surface.
CAV said that the funds raised will be used to acquire the Project, fund the initial exploration work, and provide working capital.
Barracuda acquisition terms
The company said that it would acquire 100% of the Barracuda PGE-Ni-Cu Project E58/551, from Corporate & Resource Consultants Pty. Ltd and Bruce Legendre.
CAV said that it has paid a $10,000 non-refundable deposit, with the balance of $40,000 in cash and 20 million fully paid ordinary shares in CAV payable at settlement to the Vendors of the Project.
Carnavale said that settlement will occur 5 business days after Ministerial consent has been granted for the transfer and the Vendors have transferred the title of E58/551 to CAV. In addition, CAV will also grant the vendors a 0.5% Net Smelter Return royalty on minerals produced from the tenement.
The company said that it has received support for a Placement from overseas, sophisticated and professional investors to raise $2.1 million. CAV said that it proposes to issue 300 million shares at an issue price of $0.007 per share, together with 150 million free attaching options.
Carnavale said that 200 million ordinary shares will be issued under the Company’s existing placement capacity. The Placement is scheduled to close on or around 16 March 2021. The company said that 150 million free attaching options will be issued to the participants of the Placement.
The company said that the funds raised will be used to acquire the Project, fund the initial exploration program at the Barracuda project, fund ongoing and planned exploration programs at the Company’s existing projects, and provide working capital.
Exploration strategy for Barracuda
CAV said that it plans to undertake initial fieldwork at the Barracuda project as soon as possible. The company said that the exploration program will include an airborne EM survey and a detailed review of the Project geochemistry and aeromagnetics.
Carnavale’s proposed work program includes the following: fly the Project area with airborne EM, which was used by Chalice Mining Limited to define the Julimar PGE- Ni-Cu-Co-Au discovery; digitally capture the Pancontinental soil geochemistry and contour the PGE, Ni, and Cu data to define metal-anomalous trends; follow-up airborne EM anomalies with ground EM, with priority given to areas with established, coincident PGE-Cu-Ni soil anomalism; and drill-test targets subject to results.
The company said that it plans to survey the area with high-resolution helicopter-borne EM, and reconstruct digital data files from the analogue plots of soil geochemistry (histogram line profiles) reported by Pancon (A23847). CAV said that both sources of data will then be used to establish priority areas for follow-up ground EM surveys and the drill testing of the modelled conductive plates if considered robust investment opportunities.
CAV Chairman Ron Gajewski said: “We are delighted to have been able to acquire a new Platinum, Palladium, Nickel, Copper exploration project in Western Australia with high-grade PGE mineralisation identified at surface.
The Company will now contract an airborne electromagnetic survey, to be followed swiftly up by ground EM and analysis of the geochemistry to identify drill targets as soon as possible. This new project is a great fit with our existing exploration opportunities in nickel and gold.”
*Image Source: Carnavale Resources Limited