Critical Resources (ASX:CRR) has entered into binding agreements to acquire the Cap Burn Project, as well as four prospecting permit applications on the South Island of New Zealand.
As part of the Cap Brun acquisition with Western Woods NZ, Western Mathew NZ, and Mineral Rangahau, Critical Resources will grant the vendors a 1.5% net smelter return royalty on future production.
As part of the Koura permits, Critical Resources will pay Koura Resources $60,000 cash and deferred milestone payments, totaling $450,000 cash or 75 million shares, contingent on exploration outcomes and permit conversions.
The completion of the transactions will be subject to completing due diligence, as well as the Cap Burn parties entering into a royalty deed relating to the royalty.
Upon completion of the Koura transaction, a joint venture will be formed, with Critical Resources holding a 90% stake in the permits while Koura holds the remaining 10%.
Koura will be free carried until a final investment decision has been made by Critical Resources to proceed with mine development after all studies and permits are complete.
CEO Tim Wither says this acquisition complements the company’s gold and antimony portfolio, with advanced drill-ready targets.
“The company looks forward to progressing the New Zealand projects alongside our New South Wales Amoco and Mayview projects,” Wither says.
“To fast-track the exploration programs across the Critical Resources New Zealand portfolio, the company has partnered with a New Zealand-based geological group, with links to the early discovery and resource growth period of Santana Minerals’ (ASX:SMI) Rise and Shine deposit.”
The projects provide an underexplored land position of 1,463km2 with low-holding costs in the Otago region of New Zealand.
Critical Resources is a mineral explorer and developer focused on its asset portfolio in Australia and Canada. The company’s project portfolio is considered prospective for primarily lithium and copper.
Write to Aaliyah Rogan at Mining.com.au
Images: iStock
