Magnum Mining and Exploration (ASX:MGU) has entered into binding inter-conditional agreements with Monomatapa Investments and EV Resources (ASX:EVR) to acquire multiple copper-gold projects in the US.
The transactions include three project areas with the Parker Gold and La Cienega projects in western Arizona and the Mormon Canyon Copper-Gold-Silver Project in north eastern Idaho.
As part of the deal with Monomatapa, Magnum will acquire Monomatapa Mining Services — the entity that holds the Parker and Mormon Canyon projects — for US$200,000 ($335,717) in four equal installments.
Magnum will also acquire EV Resources’ entity which holds the La Cienega Project via granting EV a 2% net smelter return royalty in respect of any minerals produced from the project area.
Both transactions are subject to completing due diligence and obtaining all necessary approvals.
Magnum intends to use the funds raised from an ongoing entitlement offer, which closes on 28 April 2025, to fund the Monomatapa transaction and for exploration across its assets.
The initial work will focus on confirming existing walk-up drilling programs. Magnum plans to conduct a field program to collect surface samples, geological mapping, and appraise the areas for possible magnetic surveying to assist in mapping.
Magnum notes that the data will be used to underpin and support an iron oxide copper-gold model being pursued and to firm up drilling priorities. This work is expected to be conducted over the next 12 months.
The Parker Project, located in La Paz Country, is focused on the iron-copper Mississippi Valley-type mineralisation developed in palaeozoic sediments.
Mormon Canyon, located in Lemhi County, covers 4.371km2 and occurs in a well-endowed gold-copper region.
Meanwhile, the La Cienega Project, located in the Buckskin Mountains, contains several outcrops of copper and numerous old copper mine workings on a mineralised trend over a 2.5km strike.
Write to Aaliyah Rogan at Mining.com.au
Images: EV Resources
