Narryer Metals (ASX:NYM) says it will acquire the Redhill Copper Project in Chile for 20 million shares plus a $1 million milestone payment.
The company reports 29Metals (ASX:29M) will also invest $1 million at $0.10 per share, representing a 54% premium to current market prices.
The Redhill Project contains a mineral resource estimate (MRE) of 4.3 million tonnes (Mt) @ 1.70% copper (Cu), 33 grams per tonne silver (Ag), and 0.30g/t gold (Au).
The project also features an exploration target of 16–49Mt @ 1.20–2.60% Cu, 0.40–0.40g/t Au, and 34–55g/t Ag. Narryer notes mineralisation remains open along the current 5km strike length.
Executive Chairman Richard Bevan says the acquisition provides entry into a ‘premier copper jurisdiction’ with significant growth potential.
“The Redhill Copper Project represents a rare, district-scale opportunity in a premier, mining-friendly jurisdiction,” Bevan says.
“Cutters Cove, the most advanced area within the project, features historic, high-grade copper production, an existing resource and a substantial exploration target.”
Located 110km southwest of Punta Arenas in southern Chile, the Redhill Project consists of several deposits and exploration prospects. Cutters Cove operated from 1970 to 1975, producing 212,000 tonnes @ 1.72% Cu.
The project includes 1,620 hectares of exploitation concessions covering Cutters Cove and 14,600 hectares of exploration concessions along a 150km stretch of the Rocas Verdas belt.
In 2022, 29Metals completed drone magnetic surveys, rock chip sampling, and short-hole diamond drilling, identifying extensions to known mineralised veins and new surface mineralisation.
The $1 million milestone payment becomes due upon delineation of a 12Mt MRE at 2% or greater copper equivalent. Milestone shares will be issued based on the 10-day volume weighted average price prior to achievement.
Following completion, Narryer says Dean Hildebrand will join as non-executive director. Hildebrand is the head of investments at Mimaro and previously served as director of Black Mountain.
The company intends to execute a staged three-year drilling program to test and expand the exploration target. Stage one involves approximately 7,000m of diamond drilling to test 5–15Mt of the target area.
“Our strategy is clear: grow the existing resource to a significant scale by conversion of the exploration target and test the known strike extensions to discover new high-grade copper mineralisation,” Bevan says.
The transaction remains conditional on regulatory approvals by 31 December 2026.
Futura Capital acted as financial adviser, with Steinepreis Paganin providing legal advice.
Narryer Metals is a critical minerals explorer with projects in Australia and Canada.
Write to Paula Fabe at Mining.com.au
Main image: Narryer Metals
