Orange-based explorer Sky Metals (ASX:SKY) has entered an option agreement with pre-initial public offering (IPO) explorer Burrendong Minerals to divest its Galwadgere Copper-Gold Project in New South Wales.
Under the two-stage agreement, Burrendong will earn the option to purchase Galwadgere after spending $250,000 on exploration in the area within 18 months of executing the purchase agreement. Once stage one is satisfied, Burrendong will then be able to purchase Galwadgere outright by either a cash or share payment of $600,000.
Sky reports Burrendong has a portfolio of projects centred on the area around Galwadgere, including the Commonwealth Deposit. Burrendong aims to list on the Australian Securities Exchange (ASX), with an IPO planned in the coming months.
Commenting on the divestment, Sky Metals Chief Executive Officer (CEO) Oliver Davies says: “The integration of the Galwadgere Project into the Burrendong Minerals portfolio allows Sky to see value for this non-core project while continuing to develop the Tallebung and Narriah projects over the coming months.
“Galwadgere will be a terrific complement to BML’s portfolio of mineral resources in NSW and streamline SKY’s portfolio to focus on core assets”
Galwadgere will be a terrific complement to BML’s portfolio of mineral resources in NSW and streamline Sky’s portfolio to focus on core assets.”
On 19 May 2023, the $19.54 million market capitalisation company received binding commitments to raise $3.5 million under a placement to accelerate development at Tallebung.
Sky Metals is an Orange-based explorer focused on developing its portfolio of tin, gold, and copper projects in New South Wales. These assets include the Tallebung, Doradilla, Narriah, and New England tin projects, the Iron Duke Copper-Gold Project, and the Cullarin/Kangiara JV and Caledonian/Tirrana gold projects.
Galwadgere lies about 15km southeast of Wellington in central New South Wales and features an open Mineral Resources Estimate (MRE) of 3.6 million tonnes at 0.78% copper and 0.28g/t gold.
Write to Harry Mulholland at Mining.com.au
Images: Sky Metals Ltd
