Resolution Minerals (ASX:RML) has entered a binding agreement to acquire the Horse Heaven Antimony-Gold-Tungsten Project, with drilling planned later this year to meet global demand for critical minerals.
Oakley Capital Partners acted as the lead manager for this placement, as well as the corporate advisor for the acquisition.
The company is raising $1.9 million by issuing 146.15 million shares at a price of $0.013 per share, representing the company’s 15-day volume weighted average price (VWAP).
For each two shares subscribed, shareholders will be offered a free attaching option.
Following the completion of this acquisition, Resolution will use the capital raised to fund exploration at the Horse Heaven Project, as well as the company’s existing projects.
Resolution will also use funds to acquire the remaining 48% of the 64North Project from Alaska Energy Metals (TSX-V:AEMC), for US$200,000 ($307,044) cash.
The Horse Heaven Project hosts the Antimony Ridge Fault Zone and the Golden Gate Fault Zone, both with non-JORC compliant resources including 216,000 ounces of gold in 7.26 million tonnes at 0.93 grams per tonne at the Golden Gate Hill prospect, and 70,000 ounces of gold in 3.17 million tonnes at 0.69g/t at Antimony Hill prospect.
Both striking mineralisation, the Antimony Ridge Fault Zone spans 1.2km along strike of known gold-antimony-silver-tungsten mineralisation, where the Golden Gate Fault Zone sees 3.5km along strike that associates the disseminated gold mineralisation with hydrothermally altered and sheared granodiorite.
Previous drilling intercepts returned 85.34m @ 0.937g/t gold at drillhole 87-GGR-31, including 38.10m @ 1.459g/t gold and 30.48m @ 1.354g/t gold at drillhole 86-GGR-01.
The project hosts potential for mineralised faults and shears that traverse with “favourable” host rocks, with an additional strike between 10km and 15km in length.
Executive Director Aharon Zaetz says the acquisition of this project has potential to be transformative for the company’s prospects.
“As many governments around the world look to onshore their supply of critical minerals, such as antimony and tungsten, we have secured a commanding ground position with known antimony occurrences and next to what is likely to become the largest antimony producer in the USA,” Zaetz says.
“Resolution Minerals’ entry into US critical minerals comes at a terrific time, with the market attributing huge premiums to ASX-listed companies operating in the space over the last eight weeks, such as Dateline Resources (ASX:DTR), Trigg Minerals (ASX:TMG) and Locksley Resources (ASX:LKY) which have all seen significant re-ratings in recent weeks, thanks to the supportive pro-mining policies of new President Donald Trump.”
In light of global demand for antimony, tungsten, and gold, Resolution Minerals aims to ramp up drilling at the project later this year, with targets already set.
Tungsten and antimony are both critical elements that are prominent in various industrial applications.
Tungsten is used in the manufacturing of cutting tools from its high-speed steel, which was previously produced from the Golden Gate Hill target between the 1950s and 1980s.
Currently priced at US$3,340.5 ($5,132.28) per ounce, gold has seen an increase of 26.88% over the year to date.
The Horse Heaven Project borders Perpetua Resources’ (TSX:PPTA) Stibnite Gold-Antimony Project, within the historical Stinite Mining District of Valley County in central Idaho.
Write to Maddison Elliott at Mining.com.au
Images: Resolution Minerals
