Strategic Energy Resources (ASX:SER) has agreed to acquire a whole interest in the Diamantina Copper-Gold Project in western Queensland from Anglo American’s (LSE:AAL) subsidiary, Anglo American Exploration Australia.
After executing the sale and purchase agreement, the company will acquire two exploration licences as well as three adjoining licences applications hosted within the project.
Strategic Energy will pay $150,000 cash and $150,000 in shares to Anglo to execute the sale, and another payment of that same value after completing a conduct and compensation agreement with landholders or 12 months after the first payment.
Shares will represent a 50% premium to the monthly volume weighted average price (VWAP) from a minimum price of $0.01, subject to ministerial approval to transfer exploration permits.
Anglo will be offered a 2% net smelter royalty (NSR) from goods produced at the exploration licences, which Strategic Energy will be allowed to repurchase for up until two months after the Bankable Feasibility Study has been completed.
The company will pay $10 million for 0.5% of the NSR, or $30 million for 1%, while spending a minimum of $1 million on exploration costs within the first two years of the agreement.
Should Strategic Energy fail to meet this payment minimum, Anglo will be eligible to claw-back for the two licences.
Managing Director David DeTata says the acquisition opens the company up to the southern extensions of the Mount Isa Inlier, after already securing the northern extensions with its Isa North and Canobie projects.
“The Mount Isa Inlier is one of the most metallogenic regions in the world and it is our belief that undercover extensions both north and south are the next frontier for major mineral discoveries,” DeTata says.
Strategic Energy intends to conduct an extensive review of the geophysical and drill core data from the project over the next several months while tenements are being transferred.
While land access agreements are being negotiated, the company will follow up the site with a field visit to prepare for ground exploration later this year and drilling in early 2026.
Write to Maddison Elliott at Mining.com.au
Images: Strategic Energy Resources
