Trek Metals (ASX:TKM) has secured a new tenement application (E80/5996) that will form part of its Christmas Creek Project in the Kimberley Region of Western Australia.
The tenement represents a previously unexplored, ‘largely’ concealed district-scale gold and rare earths exploration opportunity associated with a ‘major’ continental-scale tectonic lineament intersection.
Under the agreement with the original applicant, Ross Chandler, Trek will pay $40,000 as a reimbursement for all application fees, costs, and expenditure incurred in respect of the application.
The $22.92 million market capitalisation company will also issue $160,000 worth of Trek shares to the original applicant, based on the 20-day volume weighted average price (VWAP) of shares 2 days prior to the date of executing the agreement. Trek will also grant the original application a 1% net smelter royalty for all minerals produced in respect of the tenements to the original application.
Under the terms of the royalty, upon a decision to mine being made at the tenements, Trek will have the exclusive right to purchase the royalty back for $1 million.
Trek Metals Chief Executive Officer (CEO) Derek Marshall says Christmas Creek is an ‘exceptional’ growth opportunity for the company, and it’s ‘very rare’ for a junior to get their hands on a district-scale exploration asset like this one.
“This new tenement application is of significant interest to Trek, as it potentially hosts rare earth mineralisation due West of the Cummins Range carbonatite. The tenement may also host an extension to the mineralised structures at the Zahn prospect.
We are very excited by this acquisition, and we see the Christmas Creek Project not only becoming a pivotal asset for the company but also an emerging centre of multi-element exploration and discovery in Western Australia.”
“we see the Christmas Creek Project not only becoming a pivotal asset for the company but also an emerging centre of multi-element exploration and discovery in Western Australia”
Christmas Creek previously sat within Newmont’s (ASX:NEM) suite of exploration projects held under a joint venture with privately held company Archer X.
Trek Metals is a battery metals-focused mineral explorer. The company explores in ‘frontier’ locations with the aim of unlocking hidden value in ‘largely under-explored’ regions.
As of 30 September 2023, the company had $7.201 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Trek Metals
