Catalina Resources (ASX:CTN) has entered a binding agreement to acquire in full BGM Metals and its associated exploration licences in the Eastern Goldfields of Western Australia.
The terms of the agreement include an option fee of $10,000, payable on execution, an option term of 12 months, and an exercise consideration of $200,000 in Catalina shares, based on a 20-day volume weighted average price (or cash equivalent).
The transaction strengthens Catalina’s copper strategy within a globally recognised mineral jurisdiction, adding a pipeline of advanced copper-linked targets across multiple mineralisation styles.
BGM’s licences contain several defined prospects and exploration targets, providing Catalina with a diversified exploration pipeline. The Maverick Prospect hosts discrete historical electromagnetic conductors and represents the most immediate exploration opportunity in BGM’s portfolio.
Executive Director Ross Cotton says that the work conducted at these exploration targets provide a compelling technical foundation for further exploration work.
“Importantly, the option structure allows Catalina to secure exposure to this opportunity in a disciplined manner while we undertake detailed technical assessment,” Cotton says.
“The acquisition expands our copper-gold exploration pipeline and positions the company to evaluate a prospective mineralised corridor within one of Western Australia’s established mineral provinces.
“Importantly, this acquisition comes as Catalina continues to advance exploration across its broader project portfolio, with further results expected from ongoing programs, including the Central Yilgarn and Breakaway Dam.”
The transaction builds on Catalina’s operational and financing initiatives and aligns with its portfolio strategy to expand its copper exposure to complement it’s gold portfolio.
Catalina Resources is a diversified Australian exploration and mine development company.
Write to Amy Rotman at Mining.com.au
Images: Catalina Resources
