DMC Mining (ASX:DMM) has struck a deal to acquire the Firawa Uranium-Rare Earth Element-Niobium Project and the Labé Uranium Project in Guinea.
The company, which up until now has been solely focused on nickel in Western Australia’s Fraser Range region, has signed binding agreements with Veridis for the Firawa Project and Mining Development for the Labé Project.
Given the expansion of its exploration focus, DMC is now required to re-comply with chapters one and two of the ASX listing rules.
Chairman David Sumich says the proposed Firawa Project acquisition fits well into DMC’s critical minerals development strategy.
“As well as having a mineral resource estimate reported in accordance with the JORC (2012) code, including over 12,000 metres of historic drilling, we are acquiring an oxide project that contains nearly 200 high-grade rare earth intersections,” he says.
“The significant exploration program already completed allows us to hit the ground running.
“The Labé Project will complement our exploration of the Firawa Project and will be an additional asset to our growing portfolio of uranium-based assets.”
The acquisitions will be settled largely via the issue of DMC shares to the vendors.
The company will pay Veridis a US$90,000 exclusivity fee and issue 35 million shares, with a deemed value of $1.75 million, on completion of the transaction.
DMC will also issue Veridis 130 million performance rights that will convert to shares on completion of certain milestones.
For the Labé Project acquisition, DMC will issue Mining Development 15 million shares, with a deemed value of $750,000.
The Firawa Project hosts a JORC-compliant inferred resource of 27.1 million tonnes @ 295 parts per million (ppm) uranium.
DMC says the project, which is a carbonatite style deposit, has the potential to be a “globally significant” deposit, based on scale potential and historic grades.
Historic intercepts include 14m @ 471ppm uranium from 4m, 45m @ 32,900ppm total rare earth oxides (TREO) from 7m, as well as 58m @ 775ppm uranium from 43m, 100m @ 11,608ppm TREO from 8.6m and 68m @ 15,800ppm TREO from 40.6m.
An analysis of five samples showed an average neodymium-praseodymium to TREO ratio of 28%.
The Firawa mineralisation also contains anomalous concentrations of up to 22,784ppm (2.28%) niobium from rock chip sampling along the 3km mineralised zone.
Historic drilling returned intercepts including 5m @ 5,859ppm niobium from 48m.
A total of 154 historic drill holes have been completed at the Firawa Project, for 12,342m of drilling.
The mineralised zones of uranium and rare earths extend for around 3km and are open at depth and to the east and west, according to DMC.
The 100km2 Labé Project, meanwhile, is located along strike from Haranga Resources’ (ASX:HAR) Saraya Uranium Deposit.
In conjunction with the acquisitions, DMC will undertake a $5 million capital raising. CPS Capital has been appointed as lead manager.
Veridis vendors Michael Minosora and Sebastian Randazzo will introduce sophisticated and institutional investors to subscribe for up to $1 million of the raising.
Both Minosora and Randazzo will join the DMC board on completion of the acquisitions. Sumich will transition to Managing Director.
A shareholder meeting is scheduled for early August.
Write to Angela East at Mining.com.au
Images: DMC Mining
