Rimfire Pacific Mining (ASX:RIM) has doubled the size of its wholly owned Broken Hill Cobalt Project in New South Wales, following executing a tenement purchase agreement with Castillo Copper’s (ASX:CCZ) subsidiary BHA No.1.
Managing Director David Hutton says expanding the project area is a ‘strategic’ development for the company and builds on the ‘high-grade’ cobalt sulphide drill intercepts obtained at Bald Hill last year.
“We look forward to getting on the ground as soon as possible to determine the priorities for exploration follow-up at Broken Hill, whilst concurrently advancing the development of our New South Wales scandium projects.”
In conjunction with ongoing fieldwork at the company’s Bald Hill Project, Rimfire will be starting field reconnaissance work at the newly acquired tenements to determine its next moves.
Under the agreement, Rimfire, which has a market capitalisation of $35.52 million, will issue $150,000 worth of shares at $0.0186 to Castillo.
The issue price is the 5-day volume weighted average price (VWAP) up to and including the last day of trading on the ASX before the date of executing the agreement.
Further, Rimfire will issue a further $150,000 worth of Rimfire shares to Castillo. Yet, if at any time after completing the transaction, Rimfire’s share price is greater than $0.0279, the shares to be issued would be at the subsequent share price.
As a result, the company would issue about 5.376 million Rimfire ordinary shares to Castillo, if the subsequent share issue price is met.
The newly acquired tenements are considered to be prospective for cobalt, copper, and pegmatite-hosted rare earths.
Rimfire Pacific Mining is a minerals explorer focused on exploring mining jurisdictions in central western New South Wales, Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Rimfire Pacific Mining
