Trigg Minerals (ASX:TMG) has entered into a binding agreement to purchase 100% of mineral explorer Rush Resources for the Drummond gold and base metals project in Queensland.
The company will acquire Rush for just over 56.66 million shares in 2 tranches, comprising 38.33 million shares on deal completion and 18.33 million shares, subject to an operational milestone of 2,000m of drilling and a minimum intersection of 20m @ 1g/t Au being achieved within 2 years at the project.
Drummond will now be able to progress to the next stage of development, following this agreement.
Trigg notes that the Rush acquisition is subject to a number of conditions, including Trigg shareholder approval.
A general meeting is anticipated to be held on 20 October 2023 to seek approval of the more than 56.6 million shares to be issued.
The company plans to conduct a rights issue to raise up to $1.8 million to support the acquisition, of which $1 million has been underwritten by GBA Capital.
Funds raised will also be used to complete innovative pilot testwork at the Lake Throssell sulphate of potash project in Western Australia, alongside defining drill targets at the Drummond Project.
Commenting on the acquisition, Trigg Minerals Non-Executive Chairman Mike Ralston says: “We are excited about the possibilities this new opportunity brings to the company, which adds to our existing Lake Throssell Sulphate of Potash (SOP) project in WA.
“We are excited about the possibilities this new opportunity brings to the company, which adds to our existing Lake Throssell Sulphate of Potash (SOP) project in WA“
We believe it is in the best interests of shareholders at this point to have a more diversified portfolio that can potentially deliver significant value for Trigg while further de-risking our asset base and giving shareholders exposure to metals with attractive fundamentals and leverage to the global energy transition.
The substantial cash spent historically at the Brummond Project by 2 experienced gold companies provides considerable upfront value for Trigg and allows us to move faster and with more certainty towards an initial drilling program.
Any exploration success near to several world-class gold projects in the region will open further opportunities, including toll treatment. We also like the fact that historical work has also identified base metal potential on these tenements.”
Trigg Minerals is an ASX-listed explorer and developer, focusing on brine-hosted fertiliser mineralisation that are critical for the production of high-nutrient food sources. As of 30 June 2023, the company had $1.26 million cash at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Trigg Minerals
