NewPeak Metals (ASX:NPM) has entered into a binding term sheet with privately held Yacimiento to acquire the Treuer Range Uranium-Vanadium Project in the Northern Territory.
The Treuer Range Project lies in the Ngalia Basin, covering 230.7km2, and is considered prospective for sandstone-type uranium-vanadium mineralisation.
Under the deal, the $4.76 million market capitalisation company will pay the vendor $350,000 via the issue of 23.33 million shares at $0.015 per share and will grant a 2% net smelter royalty, with buyout provisions favourable to NewPeak.
Due diligence work has been completed and the company is now moving to finalise a formal sale agreement, aimed to complete the transaction within several weeks.
NewPeak says it intends to conduct exploration at Treuer Range with the aim to define a mineral resource.
Exploration work, which will begin in the second half of this year, will include reviewing and evaluating historic exploration, acquiring and interpreting advanced spaceborne thermal emission and reflection radiometer (ASTER) or other high-definition satellite imagery data.
The company will also undertake reconnaissance geochemical sampling, scintillometer transverse and broad-scale geological mapping.
Priority areas will be followed up with wide-spaced, low-detection soil sampling, and areas with shallow cover tested by trenching, rotary air blast, or aircore drilling.
Further, ground geophysical surveys will be carried out, alongside reverse circulation drilling to test the mineral potential at priority areas and to improve NewPeak’s geological understanding.
Once completed, an infill reverse circulation and diamond drilling program will kick off to define resources and obtain samples for metallurgical testwork.
NewPeak says the acquisition marks the next step of its rejuvenation plans in entering the strategic critical minerals space, providing a “unique” opportunity for the company.
In February 2024, the company entered into a binding term sheet with Canadian unlisted company CANCO to sell 100% of its interest in its Finnish subsidiary companies, NewPeak Finland Oy and Kultatie Holding Oy, which held a portfolio of gold permits in Finland.
The divestment formed part of the company’s rejuvenation plan, which began in early January 2024.
Since embarking on this plan, the company has sold its gold permits in New Zealand and strategic mineral permits in Sweden, as well as acquired new exploration opportunities focusing on critical and battery minerals.
Write to Aaliyah Rogan at Mining.com.au
Images: NewPeak
