Cosmos Exploration (ASX:C1X) reports that it has entered into a binding term sheet with Regis Resources (ASX:RRL) to acquire an 80% interest in adjoining tenements immediately south of its Orange East Project in New South Wales.
The acquisition represents a ‘significant’ expansion of the company’s exploration footprint in the world-class Lachlan Fold Belt, with the move more than doubling its presence in the region ahead of planned exploration activities later this year.
“We are pleased to have expanded our position in this highly prospective region along strike from the very large McPhillamys Gold Project”
Commenting on the acquisition, Cosmos Exploration Executive Chairman Jeremy Robinson, stated: “We are pleased to have expanded our position in this highly prospective region along strike from the very large McPhillamys Gold Project, and we look forward to getting on the ground in the coming months to do this project justice.”
The company also notes that these strategic tenements are directly along strike from the more than 2Moz McPhillamys Gold Project, which is also owned by Regis Resources, however remain under-explored.
In addition, it is reported that this acquisition will aid in the commencement of an expanded exploration program in the coming months and years.
Terms of the acquisition include Cosmos acquiring 80% interest in exchange for 600,000 shares in the company and a payment of $30,000, as well as the vendors retaining a 20% free carried interest until completion of a planned Prefeasibility Study and a 2% royalty for the first 500,000 ounces of gold equivalent production.
Completion of the acquisition is subject to satisfaction of standard condition precedents.
The Orange East Project is located within the world-class Lachlan Fold Belt in New South Wales and represents an advanced exploration project with Cosmos owning 75% of all associated tenements. The project is ‘highly prospective’ for orogenic gold, porphyry-related copper-gold and volcanic-hosted massive sulphide (VHMS) type deposits.
With the acquisition now in motion, Cosmos Exploration announces that it will move forward with defining a new geological model, acquiring key land access agreements and drilling contracts for the planned drilling campaign in Jan-Feb 2023.
Commencement of the planned drilling operation is subject to the company receiving all necessary approvals.
Images: Cosmos Exploration Ltd
