Minerals 260 (ASX:MI6) has executed an agreement with eMetals (ASX:EMT) to acquire the ‘highly prospective’ Nardoo Lithium-Rare Earths (REE) Project in Western Australia.
The company says the signing of the agreement with eMetals brings it one step closer to acquiring an ‘extensive’ lithium-REE land package comprising 7 exploration licences, which cover a total land area of 789km-square within Western Australia’s ‘highly prospective’ but underexplored Gascoyne Province.
Minerals 260 notes the tenement is situated in proximity to several ‘significant’ mineral occurrences, including Red Dirt Metals’ (ASX:RDT) Yinnetharra Lithium Project, and Kingfisher Mining’s (ASX:KFM) Mick Well and namesake projects.
The company also reports government mapping has recorded numerous pegmatites and tantalum occurrences in the region including a number on the Nardoo tenure, which highlights good potential for the discovery of hard rock lithium deposits.
Key terms of the acquisition include Minerals 260 issuing 7 million shares to eMetals on completion at a deemed issue price of $0.30 per share. These shares will be subject to a voluntary escrow period of 6 months from completion of the acquisition, which is also conditional on the execution of a Deed of Assignment relating to an underlying royalty on one of the tenements.
It is believed a detailed review of previous exploration data will be undertaken by the company prior to planning of geochemical and geophysical programs designed to quickly define targets for drill testing.
Addressing the acquisition, Minerals 260 Managing Director David Richards says: “The acquisition of a large area in an emerging, highly prospective region is an exciting opportunity for Minerals 260 and our shareholders. The deal is consistent with the company’s philosophy of targeting underexplored areas, previously considered less fashionable, with the potential to discover truly world-class mineral deposits.
“The deal is consistent with the company’s philosophy of targeting underexplored areas, previously considered less fashionable, with the potential to discover truly world-class mineral deposits”
In this regard, Nardoo is a complementary addition to our flagship Moora Project, representing a high-quality geological opportunity in an underexplored region with the potential for large-scale discoveries in a basket of commodities that fits extremely well with our strategic focus and expertise. We look forward to rapidly advancing the project and getting the drill rigs going as soon as possible.”
Minerals 260 also notes previous exploration conducted on the Nardoo tenure has been focused on gold, base metals, tungsten, and uranium with only limited work undertaken for lithium and REEs.
In addition, the company reports it is in a ‘strong’ cash position of $21 million at 31 December 2022, which ensures it can maintain exploration momentum at both the Nardoo project and its other key Moora/Koojan Project in Western Australia’s Julimar region.
With the agreement now executed, Minerals 260 announces due diligence has been completed and the only condition to completion is the execution of the deed of assignment.
Minerals 260 is an ASX-listed company based in Perth, Western Australia that was created to contain the non-lithium assets of Liontown Resources (ASX:LTR), which include the Moora and Koojan projects in the Julimar Mineral Province of southwest Western Australia. The projects are considered prospective for copper, gold, and platinum group element (PGE) mineralisation.
Images: Minerals 260 Ltd
