Mergers and acquisitions (M&A) being reported by the Australian Securities Exchange, include Nex Metals Exploration (ASX:NME) which executed a binding heads of agreement to operate the North Hennai gold project in Egypt’s Eastern Desert.
North Hennai, covering 16km2, lies within the Eastern Desert which is considered to be one of the world’s most under-explored prospective mining districts.
Under the terms of the agreement, Nex Metals will fund all of the costs of exploration and future production. The company will be entitled to a 100% priority cost recovery and 44% of the profits following costs.
Local partner Shalateen Mineral Resources Company will receive 36% of the profits with the remaining 20% to be received by the project owner Golden Eagle Mineral Resources.
Golden Eagle has agreed to provide technical assistance to Nex Metals as the company’s local advisor on the project.
Managing Director Ken Allen says the North Hennai project is a strategic first step in a broader push into the Egyptian Eastern Desert.
“Our immediate next steps are a continuation of our due diligence activities at this project, and consider what opportunities there are to both implement more efficient production methods at North Hennai to generate new revenues and conduct targeted and systematic exploration to unlock additional value,” Allen says.
Underpinning regional growth
Kalamazoo Resources (ASX:KZR) has acquired nine exploration tenements – the Xanadu Gold Project – from Platina Resources (ASX:PGM) that are contiguous with, and along strike, of the Ashburton Gold Project in Western Australia.
Under the sale and purchase agreement, Kalamazoo will issue 1.25 million shares at $0.12 per share, subject to shareholder approval. The company will also pay $500,000 upon achieving an indicated resource of no less than 250,000 ounces of gold within five years.
Platina will also be granted a 1% net smelter return royalty payable on gold extracted from the tenements.
These newly acquired tenements increase the Ashburton Project area by 170.7km2 to a combined total of 380.2km2.
Kalamazoo, which has a market capitalisation of $29.58 million, says the acquisition forms a key component of its regional growth strategy, which targets additional gold resources from brownfield and greenfield prospects surrounding the proposed Mt Olympus mine development, currently subject of a Scoping Study.
In delivering this strategy, the company aims to expand its resource base, extend potential mine life, and establish a major gold camp in the surrounding region.
Meanwhile for Platina, the divestment sharpens the company’s exploration focus on the newly acquired Mt McKenna Gold Project.
Complementing projects
Thunderbird Resources (ASX:THB) has entered into a binding share sale agreement with privately held LM2, to acquire the Springfield gold deposit in New South Wales.
As part of the deal, Thunderbird paid $50,000 cash on execution of the agreement, as well as an additional $150,000 on completion. The company will issue 28.57 million shares subject to shareholder approval.
Thunderbird will also issue $800,000 worth of shares upon achieving specified milestones within five years.
The company will conduct a placement to raise up to $2.2 million via two tranches. CPS Capital Group will act as lead manager to the placement.
Funds will be used to acquire the project, as well as initial drilling at Springfield. The funds will also be used to further targeting work at the Rockvale and Kookaburra projects, and general working capital.
The Springfield deposit, which lies within the Slashers Flat Project and is located 10km south of the town of Gulgong, has had no drilling completed since 1999.
Springfield is also considered highly complementary to Thunderbird’s wholly owned Rockvale and Kookaburra projects which sit close in proximity to Larvotto Resources (ASX:LRV) Hillgrove Gold-Antimony Project.
Write to Aaliyah Rogan at Mining.com.au
Images: Nex Metals Exploration, Kalamazoo Resources, & Thunderbird Resources
