Tartana Minerals (ASX:TAT) has entered into a non-binding term sheet to acquire privately held exploration company Queensland Strategic Metals, which holds 10 exploration permits and one mining lease.
Queensland Strategic Metals (QSM) holds a portfolio covering 771km2 in Far North Queensland. The projects are considered prospective for copper, tin, tungsten, antimony, silver, and gold.
Under the term sheet, Tartana will issue 25 million shares at $0.05 per share to QSM, as well as 12.5 million options exercisable $0.10 expiring 31 December 2025.
Tartana, which has a market capitalisation of $5.47 million, intends to seek shareholder approval for the acquisition at an upcoming annual general meeting by the end of this year.
Following Thursday’s (10 October) announcement, Tartana’s share price had increased 23.33% to $0.037 as of 1pm AEDT.
Completion of the acquisition remains subject to executing binding formal documentation, shareholder approval, and any final due diligence, as well as QSM renewing all exploration permits held that are due for renewal.
The company has also agreed for an entity recently demerged from QSM — Queensland Alluvial Resources — and other parties to retain alluvial development rights over all the tenements by QSM on terms to be finalised between Tartana and those parties.
Out of all of QSM’s projects, the most advanced is the Daisy Bell prospect where a mineralised 6-9m wide greisen dyke can be traced for at least 1.8km along strike.
Tartana reports historical percussion drilling includes 7.6m @ 1.25% tin and 0.3% tungsten oxide, and 13.7m @ 1.46% tin and 0.48% tungsten oxide.
QSM’s other projects include Ortana and Cherry Tree, which are both prospective for copper.
Tartana says QSM’s assets complement its existing exploration portfolio providing additional copper targets, as well as increasing its exposure to critical metals.
Tartana Minerals is a copper producer and diversified mineral explorer and developer in the Chillagoe Region of Far North Queensland. The company’s assets are considered prospective for copper, gold, silver, and zinc.
Write to Aaliyah Rogan at Mining.com.au
Images: Tartana Minerals
