Norfolk Metals (ASX:NFL) has entered into a binding earn-in agreement with privately held Transcendence Mining to fund $3 million in exploration expenditure over a three-year period.
By spending the capital, Norfolk will acquire 70% of Transcendence’s subsidiary, Transcendentia Mining, which holds an option over the Carmen Copper Project, while also being granted an option to acquire the remaining 30% on completion of the earn-in.
The exploration and exploitation licences comprising the project are held by several Chilean companies and individuals.
Transcendence’s subsidiary, Carmen Copper (Carmen Chile), has entered into a binding agreement under which Carmen Chile has the exclusive right to acquire the project subject to making certain annual option payments over a five-year period.
The company has received firm commitments from sophisticated and professional investors for a conditional placement of 10 million shares in Norfolk at an issue price of $0.10 per share to raise $1 million.
The placement is conditional upon the company satisfying the conditions precedent to commencement of the earn-in period.Proceeds will be applied toward costs associated with the transaction and to fund high priority drilling and work programs.
Whistler Wealth and JP Equity Partners acted as joint lead managers to the placement.
Norfolk says an interest in the Carmen Copper Project provides shareholders with exposure to the rising demand and current favourable pricing environment for copper.
Copper is essential for various sectors, including electric vehicles, renewable energy, and infrastructure, all of which are seeing significant growth. Some analysts have already predicted US$12,000 per tonne this year, a price which is almost within reach today.
Transcendence has begun the process for a scout drilling permit and has also engaged an environmental consultant group to manage all environmental and public sector compliance.
Environmental baseline studies for the DIA (Declaracion de Impact Ambiental) permitting across the Project area will also commence immediately to successfully conclude the required monitoring.
The project is located in a remote part of the district and as such there are no communities which are directly affected by work or development.
Write to Adam Orlando at Mining.com.au
Images: Norfolk
