Tempus Resources (ASX:TMR) has entered into a conditional agreement to acquire 100% of privately held Somerset Minerals, which through its local subsidiary, holds the Prescott Project in Nunavut, Canada.
The Prescott project comprises 48 licences covering a 589km2 area and is considered “highly prospective” for base metals.
Tempus, which has a market capitalisation of $4.38 million, will pay Somerset a non-refundable exclusivity fee of $75,000 which will be used to support permitting and planning works for the upcoming exploration program.
Under the agreement, Tempus will also issue 300 million ordinary shares and 100 million performance rights, which convert into shares on a one for one basis on the meeting of certain milestones, to Somerset.
Somerset will also be granted a 1.5% net smelter royalty on future production from the Prescott Project claims, as well as any subsequent licences acquired within the project area in the first 24 months.
Tempus has completed a detailed due diligence process, yet the acquisition remains subject to shareholder approval.
Non-Executive Director Chris Hansen says the project covers a substantial area on the Prince of Wales and Somerset Islands, as well as shares the same geological sequence that hosts American West Metals’ (ASX:AW1) Storm Copper Project.
“The proximity and the interpreted geological continuity presents a compelling opportunity for Tempus to explore for both sediment-hosted copper deposits and Mississippi Valley Type deposits (zinc-lead) in a proven jurisdiction.
District scale exploration opportunities like this are becoming increasingly rare, with Tempus being one of the first movers in this emerging region.”
Hansen adds that once the acquisition has been completed in June 2024, exploration will begin shortly after.
The maiden exploration program will employ airborne gravity gradiometric (AGG) surveying across the entire Prescott area using a fixed-wing aircraft. AGG provides a higher resolution than traditional gravity surveying and can be processed into a detailed 3D inversion to uncover density anomalies.
Initial anomalies identified from the AGG survey, combined with remote sensing data, will support follow-up ground mapping activities planned for later in the 2024 season.
Tempus will also undertake detailed geological mapping and rock chip sampling. Once completed, the company will carry out a comprehensive 3D inversion of the AGG data, integrated with remote sensing data and rock chip sample results.
Results will be used to rank potential drill targets for drilling campaigns.
The Prescott project lies in the Peel Sound area of the Polaris mineral district of Nunavut, Canada. The project spans a 244km strike length and sits 130km south of Resolute Bay.
Tempus Resources is a growth-oriented gold explorer that is actively exploring in Canada and Ecuador.
Write to Aaliyah Rogan at Mining.com.au
Images: Tempus Resources
