Octava Minerals (ASX:OCT) has entered into an agreement to acquire the West Sierra Grande Fluorspar Project in Argentina and secured $1.8 million in funding through a placement to sophisticated investors.
The project covers 400km² in the Sierra Grande fluorspar district in Rio Negro Province and includes four historical fluorite-producing mines. Historical reported fluorspar grades across the region range from approximately 58% to 70% calcium fluoride (CaF₂), with some areas reaching up to 80% CaF₂ in clean vein material.
The company has received binding commitments for a two-tranche placement of approximately 99 million shares at $0.018 per share, representing a 10% discount to the 23 September closing price. The placement includes one free-attaching unlisted option for every two shares issued, with options exercisable at $0.035 and expiring three years from issue.
Octava also proposes a security purchase plan for existing eligible shareholders to raise up to an additional $500,000, allowing shareholders to subscribe for up to $30,000 worth of shares on the same terms as the placement.
Managing Director Bevan Wakelam says the acquisition aligns with the company’s strategy of “defining resources of critical minerals used in advanced technologies”.
“We are very pleased to have secured this significant landholding in a historical high-grade fluorspar producing region that includes historical fluorspar mines,” Wakelam says.
“Fluorspar is listed as a critical mineral in a number of countries and is essential in advanced manufacturing supply chains including semi-conductors, battery technologies, nuclear fuel processing, and production of aluminium and steel.”
The acquisition is structured as an option agreement that allows Octava to purchase up to 100% of shares in Aybull, which holds the exploration licences.
The option consideration comprises US$100,000 ($142,323) cash and US$200,000 in shares. Octava can exercise the option within 12 months to acquire a 70% interest for US$100,000 cash and US$250,000 in cash or shares.
Octava can then acquire the remaining 30% by announcing a mineral resource estimate of at least 500,000 tonnes at minimum 30% CaF₂ grade within 24 months, paying additional consideration of US$300,000 cash and US$550,000 in cash or shares.
The West Sierra Grande Fluorspar Project benefits from established infrastructure including paved roads, power access, and proximity to the export port of Punta Colorada, located 47km away.
Octava intends to commence field verification work in Q4 2026, with drilling to follow subject to results and approvals.
Octava Minerals is a critical minerals explorer with projects in geographically proven discovery areas.
Write to Paula Fabe at Mining.com.au
Main image: Octava Minerals
