Enova Mining (ASX:ENV) will proceed with the acquisition of the CODA project after completing due diligence.
The $20.53 million market capitalisation company reports due diligence confirms the regional prospectivity of the CODA tenements, by observing the presence of ‘important’ geological features that correlate with mineralised ‘high-grade’ surface/near surface rare earth element (REE) zones uncovered from historical drilling information.
The company has developed a drill program, for which field planning and preparation is currently in progress.
Enova will be prioritising the CODA North tenements, followed by drilling at CODA South.
An initial review of CODA suggests the ore is amenable to ionic clay extraction. The company is currently in discussions with rare earth technology companies and are exploring conventional and non-conventional proprietary technology to extract maximum value.
As this news service previously reported, Enova entered into a binding option agreement with private individual Rodrigo de Brito Mello (RBM) to acquire CODA for a cash consideration of $200,000, as well as issue 27 million shares to RBM.
Enova’s board of directors have confirmed that the CODA land package is considered ‘highly prospective’ and ‘exceptional’ exploration value, providing a sound basis to expand its operations in Minas Gerais, Brazil.
The company is continuing to develop its Charley Creek Rare Earth Project, with ongoing activities proceeding without disruption. Enova will also be continuing to review further projects and business opportunities as they arise.
Enova Mining is a critical minerals-focused explorer that owns the Charley Creek project near Alice Springs, Northern Territory.
As of 31 December 2023, the company had $939,000 cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Enova Mining
