Godolphin Resources (ASX:GRL) has agreed to acquire the remaining 49% interest of its flagship Narraburra Rare Earths Project, from joint venture partner EX9.
As part of the acquisition, Godolphin has full control of the asset as the company accelerates plans to move from exploration to mine development at Narraburra in New South Wales.
The acquisition comprises a $150,000 upfront cash payment and $100,000 of Godolphin shares. The agreement also includes two tranches of performance rights to EX9, which will vest on the date which Godolphin’s shares equals or exceeds $0.15 and then $0.25.
Managing Director Jeneta Owens says the company’s belief in the project’s potential is further strengthened by recent developments, highlighted by metallurgy results and the commissioning of a Scoping Study based on the existing resource.
“By approving this acquisition, the Godolphin board and management team capitalised on an opportunity to acquire full ownership of Narraburra on attractive commercial terms, leaving the company well positioned to execute our stated exploration and development strategy,” Owens says.
“Exploration and development will be complemented by a flexible funding pathway, where discussions with interested counterparties for potential asset sales from within Godolphin’s diversified project portfolio are ongoing.”
Upon completing the transaction, Godolphin will hold full ownership of the 504.9km2 project area.
The Narraburra project lies in the central west of New South Wales, which is host to Australian Strategic Materials’ (ASX:ASM) Dubbo Project.
Godolphin Resources is a resources explorer and developer with Australian-based projects in the Lachlan Fold Belt of New South Wales. The company’s tenements cover a 3,500km2 area of copper, gold, and base metals prospective ground.
Write to Aaliyah Rogan at Mining.com.au
Images: Godolphin Resources
