Helix Resources (ASX:HLX) has entered into separate conditional binding letter agreements to acquire a 51% interest in a strategic portfolio of copper projects in the Bryah Basin of Western Australia.
The portfolio includes seven projects covering 320km2 within the Bryah Basin, which hosts volcanic massive sulphide-style copper-gold deposits.
Managing Director Kylie Prendergast says these transactions form part of the company’s strategy to diversify and expand its copper exploration footprint.
“The acquisition consolidates key landholdings within one of the most prospective copper regions in Australia and positions Helix for significant exploration upside,” she says.
“With copper and zinc mineralisation already identified in surface samples and geophysical surveys, we believe the Bryah Basin projects represent an outstanding opportunity for Helix.
The staged earn-in structure provides us with a clear path to increasing our interest in these projects as exploration advances.”
Under the agreements with privately held companies OD4 Tom Price and Omni GeoX, Helix can potentially earn up to 90% in each of the projects subject to several conditions including entering into formal agreements.
For the Doolgunna Project, owned by Omni GeoX, Helix will pay $60,000 cash, as well as an additional $100,000 cash. The company will either pay $300,000 cash or issue 75 million shares, subject to shareholder approval.
Upon settlement, Omni GeoX will grant a 2% gross revenue royalty of interest for mineral production from the project. Helix has the first right of refusal.
Once completed, both companies will enter into a two-staged earn-in agreement, in which Helix will spend $1 million twice to earn a 90% interest in the project.
Under the agreement with OD4 for the Odette projects, Helix will pay $25,000 cash and an additional $180,000 cash. The company will also pay an additional $300,000 or issue 75 million shares, subject to shareholder approval.
Once completed, both companies will enter into a two-staged earn-in agreement on the same basis as the agreement with Omni GeoX.
Helix intends to deploy a multi-disciplinary focused approach to explore the new projects, including multi-element geochemistry, new geophysics, and drill testing.
A program of work application has been lodged for drilling at the Doolgunna-DeGrussa West projects, while a $180,000 grant has also been awarded under the Western Australian Government’s Exploration Incentive Scheme.
The company notes initial focus is expected to be on advancing the Doolgunna-DeGrussa West opportunity and then will move to test other projects and targets as they are generated.
Helix Resources is a copper-focused explorer with assets in the Cobar region of New South Wales and Bryah Basin of Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Helix Resources
