Coda Minerals (ASX:COD) has entered into binding agreements with privately held Wilgus Investments to acquire 100% ownership of the Cameron River Project in Queensland.
Coda, which has a market capitalisation of $15.66 million, says Wilgus retains the right to a 1% net smelter royalty (NSR) payable on any mineral products mined from the tenure on terms customary for this form of transaction.
Wilgus will also retain 500,000 performance rights issued under the superseded 2021 farm-in agreement.
In March 2021, Coda entered into a binding farm-in and joint venture agreement giving it the right to acquire up to an 80% ownership in Cameron River.
Due to the 2021 farm-in agreement, the 250,000 additional performance rights to Wilgus have been cancelled.
Coda Minerals Chief Executive Officer (CEO) Chris Stevens says the consolidation is a next step for both parties and will simplify ongoing exploration and commercialisation of the project.
“Elizabeth Creek is clearly our first priority; however, Cameron River remains a highly prospective exploration tenure located in an area famous for copper, gold, uranium, and rare earth elements.
We look forward to reporting the results of current review and exploration work to the market later in the quarter.”
The Cameron River project comprises 35km-square of copper, gold, uranium, and rare earths exploration tenure spanning 2 exploration permits. The tenure lies halfway between Mt Isa and Cloncurry in Queensland.
Coda Minerals is a diversified minerals explorer with assets in South Australia, Queensland, and Victoria.
As of 31 December 2023, the company had $1.9 million cash at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Coda Minerals