Scorpion Minerals (ASX: SCN) is set to expand its Murchison Goldfield footprint after signing a binding heads of agreement to purchase the Poona Project from eMetals Limited (ASX:EMT).
The deal will see Scorpion pick up a 100% interest in tenements E 20/896, E 20/963 and E 20/964, along with a 90% stake in E 20/885, which deliver a combined 904km² coverage.
The tenements are adjacent to Scorpion’s Pharos tenements, and contain the Mughal Ni-Cu target along with the Poona and Jackson’s Reward rare metal pegmatite occurrences. These are located to the immediate south of the company’s high priority PGE-Ni-Cu targets at Pallas.
“The addition of these new tenements consolidates Scorpion’s position in the Murchison and builds on our already robust portfolio of copper, gold and PGE-Ni-Cu targets in the region”
Speaking on the acquisition Scorpion Minerals Director Bronwyn Barnes said: “We are pleased to be expanding our footprint in the Murchison via this low-cost transaction with EMT. The addition of these new tenements consolidates Scorpion’s position in the Murchison and builds on our already robust portfolio of copper, gold and PGE-Ni-Cu targets in the region. Plans are well advanced to support drilling activity at Pallas and Mt Mulcahy once all necessary approvals and clearances are received, and we will now broaden this program to include an initial program across this new tenement package.”
Scorpion’s existing and newly-acquired tenements (yellow) along with significant surrounding projectsThe terms of the agreement include a cash payment of $12,500, along with 4,000,000 fully paid ordinary shares in SCN. eMetals will also retain a 0.5% net smelter return royalty across all commercial mineral output at the tenements.
The deal is subject to due diligence and conditions precedent, with settlement to be completed within 60 days.
Images: Scorpion Minerals Limited
