Kali Metals (ASX:KM1) has entered into a binding agreement with privately held Florance Resources to acquire two tenements adjacent to the Marble Bar Gold-Lithium Project in the Pilbara region of Western Australia.
As such, both tenements will expand the tenure of Kali’s Marble Bar Gold-Lithium Project by 19km2.
Under the deal, Kali Metals, which has a market capitalisation of $11.28 million, will acquire Florance for $30,000 cash and $200,000 worth of ordinary shares based on a five-day volume weighted average price prior to executing the agreement.
Managing Director Paul Adams says increasing the footprint in the Pilbara gives the company the best chance to uncover and define potential gold targets for future drilling.
“With gold prices reaching record highs this month, Kali is maintaining a key focus on the gold prospectivity of its 100%-owned Marble Bar Project in the Pilbara,” Adams says.
As of 10.50am AEDT, the price of gold is sitting at $4,718.97 per ounce, according to ABC Bullion.
Adams says reconnaissance work to date has identified two prospects, Tiger and Sheman, with gold-bearing quartz veins on surface measuring up to 7m in width, 120m in length and 4 grams per tonne at surface, and Kali has only mapped 10% of its over 9km gold-in-soil anomaly.
The Marble Bar Project, covering 77km2, is located 200km southeast of Port Hedland in Western Australia.
Kali Metals is a lithium and gold-focused explorer with a portfolio of projects across the Higginsville district, as well as the Pilbara and Southern Lachlan Fold Belt.
Write to Aaliyah Rogan at Mining.com.au
Images: Kali Metals
