Loyal Metals (ASX:LLM) is preparing to exercise the option to fully acquire the Highway Reward Copper-Gold Mine in Queensland with the support of its shareholders.
The junior explorer, which has a market capitalisation of $39.19 million, has now received shareholder approval and completed the definitive acquisition documentation with the vendors.
This means all the conditions precedent to the original acquisition have been satisfied and Loyal Metals can now move to exercise the option to acquire Highway Reward.
The decision comes close on the heels of the explorer verifying 122,000m of historical drilling results that the company believes shows the “significant remnant potential” at the past-producing mine.
With $5.8 million in available funding, Loyal Metals is ready to deploy modern exploration techniques and unlock the full potential of the Highway Reward Mine.
Highway Reward operated between 1997 and 2005, producing 3.65 million tonnes @ 5.7% copper and 260,000 tonnes @ 4.5 grams per tonne gold.
However, the previous owners only targeted the high-grade copper zones and did not consider the gold.
Loyal Metals says this leaves substantial remnant copper-gold potential adjacent to open pit and underground workings.
Past copper intercepts include 33m @ 5%, 30m @ 5.1%, and 38m @ 3.9%, while gold intercepts returned 2m @ 105.4g/t, 10m @ 17.7g/t and 65m @ 1.5g/t.
At the time the mine was operational, copper traded at around $1.14 per pound, and gold hovered just below $400 per ounce.
The mine has not been assessed in 28 years, but since then copper and gold prices have risen substantially. Copper is selling for over US$5 ($7.59) per pound, while gold is now over US$3,880 an ounce.
The major investment banks see gold hitting the US$4,000-an-ounce mark in early to mid-2026.
Goldman Sachs and JP Morgan expect the safehaven metal to hit this key pricing point by mid-2026, while State Street Investment Management predicts it will get there either before the end of 2025 or early in the new year.
Copper prices also continue to climb on disruptions to production at Freeport-McMoRan’s Grasberg Mine in Indonesia – one of the world’s largest reserves of gold and copper – as well as continued strong demand from the electrification efforts underway globally.
Managing Director Adam Ritchie says the collaborative efforts of the vendors and the strong support from shareholders has enabled Loyal Metals to advance efficiently toward the acquisition of the Highway Reward Mine.
“With Highway Reward recognised as one of the highest-grade copper and gold mines globally, and historical data confirming significant remnant resource potential, we look forward to progressing resource evaluation and drilling in the coming months,” Ritchie says.
“This marks an exciting next chapter for Loyal Metals and its shareholders.”
Once Loyal Metals has exercised the option, it will work to complete the transfer of the Highway Reward mining leases and begin its planned exploration and development activities.
The Highway Reward Mine is located just 37km from Charters Towers, within Queensland’s mineral-rich Mount Windsor Volcanic Belt.
Nearby operations include Newmont’s (NYSE:NEM) 3.2Moz Mt Leyshon Gold Mine and Yuxin Holding’s 3.4Moz Pajingo Gold Mine.
The project sits on granted mining leases, close to two processing plants, Glencore’s (LSE:GLEN) Townsville copper refinery, road and rail infrastructure, and the Port of Townsville.
Write to Angela East at Mining.com.au
Images: Loyal Metals
