NewPeak Metals (ASX:NPM) has signed a deal to acquire AusVan Battery Metals, which owns the Allaru Vanadium Project in Queensland.
Under the binding term sheet, NewPeak is offering more than 303 million shares at $0.0165 each to AusVan and its shareholders, worth $5 million
This acquisition is part of NewPeak’s rejuvenation and transitioning plans in entering into the strategic critical minerals space. This proposed transaction follows in the footsteps of acquiring the George River Uranium-Rare Earths-Scandium Project in Canada and the Treuer Range Uranium-Vanadium Project in the Northern Territory.
Once the transaction is complete, NewPeak will wholly own the Allaru Project, which has an inferred resource of 710 million tonnes of vanadium. The project is stratigraphically hosted in the Toolebuc Formation.
NewPeak plans to conduct exploration across Allaru, with the aim of upgrading the inferred mineral resource, testing for shallow, oxidised resources in the Toolebuc Formation, and metallurgical testwork.
In addition to the proposed transaction, NewPeak will conduct a rights issue to raise between $2 million and $3 million at the same share price as the term sheet.
The funds will be used to conduct exploration activities across the company’s tenements, including the George River Project, the Treuer Range Project, and the Cachi Gold and Las Opeñas Gold projects in Argentina.
Once the rights issue and proposed transaction are complete, NewPeak estimates that the AusVan vendors will hold a 38.35% stake in the company.
NewPeak also notes the sale of its Swedish strategic mineral permits has been completed, and will receive C$200,000 ($221,061) worth of shares in a Canadian publicly listed company chosen by privately held CANCO, along with C$1 million.
NewPeak Metals is a mineral explorer focused on developing its portfolio of assets in Australia, Argentina, and Canada.
Write to Aaliyah Rogan at Mining.com.au
Images: NewPeak Metals
