Resolution Minerals (ASX:RML) has entered into a binding agreement to acquire privately held Devil Prospecting, which owns antimony, gold, and copper projects in New South Wales and Queensland.
The Drake East Antimony-Gold, Spur South Gold-Copper, and Neardie Antimony projects cover a combined 192km2 area and represent strategic exposure to antimony and gold, in particular.
Under the agreement, Resolution will issue 25 million shares in the company at $0.01 per share in two equal tranches to Devil Prospecting, as well as $70,000 cash.
The completion of the transaction is subject to obtaining statutory and regulatory approvals, as well as completing due diligence.
Executive Director Aharon Zaetz says this acquisition offers an opportunity to broaden the company’s multi-commodity exploration work in two of Australia’s regions considered prospective for antimony, gold, silver, and copper.
“The Neardie, Spur South, and Drake East projects present exciting prospects that align with our strategy to unlock value from underexplored, high-potential assets,” Zaetz says.
“We were able to secure the project portfolio for a very attractive price, with the vendors agreeing to take majority of their consideration in equity in Resolution Minerals.”
The company notes it is acquiring these assets in light of the strong growth forecast of antimony, which has seen a 250% price rise in 2024 amid global supply shortage concerns following China’s ban on antimony exports.
Zaetz adds that global demand for antimony is rising, and combined with supply shortage concerns, this has resulted in record-high prices of over US$50,000 ($79,341.51) per tonne.
The Drake East and Neardie projects are considered brownfields assets with past historic antimony production. Resolution plans to review previous data and generate drill targets based on known antimony mineralisation at both projects.
If the results are considered positive by the company, the company will re-open these historical mines.
Meanwhile, at Spur South, there has been no exploration drilling across these tenements.
Zaetz says the project area hosts geophysical anomalies that constitute a clear and compelling target.
“This is particularly interesting when considering the similarity of the geophysical signatures on our ground compared to the nearby word-class tier one deposits of the Cadia Valley,” Zaetz says.
Resolution Minerals is a mineral explorer focused on acquiring, discovering, and developing precious and battery metal projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Resolution Minerals
