Victory Metals (ASX:VTM) has entered into a binding agreement to obtain 2 tenements that are contiguous with the company’s North Stanmore rare earth element project, located 10km north from the town of Cue in Western Australia.
The company has agreed to obtain tenements P20/2345 and P20/2346 from Golden State Mining (ASX:GSM), which will expand Victory’s exploration area at North Stanmore to 72km-square with about 34km-square mineralised with an average assay grade of 992ppm Total Rare Earth Oxides (TREO) and a valuable Heavy Rare Earth Oxide HREO/TREO ratio of 34%.
Golden State Mining says the deal has been executed with Victory in order to ‘sharpen’ its lithium and gold focus at both its wholly owned Yule and Paynes Find projects in Western Australia.
Addressing the deal, Victory Chief Executive Officer and Executive Director Brendan Clark says: ”The latest tenement acquisitions continue to expand Victory’s already substantial footprint in the Cue region and specifically at North Stanmore.
“The latest tenement acquisitions continue to expand Victory’s already substantial footprint in the Cue region and specifically at North Stanmore”
The recently acquired tenements surround Victory’s already granted tenements on three boundaries and we believe the tenements are highly prospective to host rare earth element mineralisation with AC drilling assay results approximately 1km to the north already confirming the presence of anomalous rare earths.”
Golden State Mining notes under the deal Victory Metals will be granted 100% ownership of tenements P20/2345 and P20/2346 at Cue, which are located in proximity to Victory’s Cue ionic clay REE discovery, which yields high ratios of heavy rare earth oxides.
It is hoped that Victory will unlock the REE potential on both prospecting licences.
Key terms of the agreement include Golden State Mining being issued up to 150,000 fully paid ordinary shares ($30,000) in Victory Metals capital. In addition, Golden State Mining is also expected to receive a 1% net smelter return royalty on both tenements, as well as 66,666 options in Victory with an exercise price of $0.30 per option.
These options are set to expire 2 years from the date of grant.
Speaking on the deal, Golden State Managing Director Michael Moore says: “The consideration mix of this transaction provides GSM with exposure to exploration success by Victory as it progresses its Cue ionic clay REE discovery.
“The consideration mix of this transaction provides GSM with exposure to exploration success by Victory as it progresses its Cue ionic clay REE discovery”
This transaction allows GSM to continue to focus on its lithium exploration activities at its 100% owned Yule project in the Mallina Basin as well as the 100% owned Paynes Find lithium project where recent results delivered a number of high priority lithium targets to follow up in 2023.”
The company also notes the agreement with Victory comes following the identification of priority lithium geochemical anomalies from a first pass soil geochemistry program at its Paynes Find Lithium Project in Western Australia, as announced by the company earlier this month.
Results from the program demonstrated lithium grades up to 217 parts per million (ppm) and warranted the starting of follow-up infill soil testing in order to refine drill targeting for early July 2023.
Golden State Mining is an ASX-listed gold, lithium and base metal exploration company focused on exploring Western Australia’s geological frontiers. The company has a WA-based exploration portfolio, which comprise the Yule, Four Mile Well, Cue, Paynes Find, Eucla Basin, Southern Cross East, Yamarna, and Ashburton projects, as well as the Cuddingwarra Project which represents a joint venture (JV) with Caprice Resources (ASX:CRS).
Meanwhile, Victory Metals is an ASX-listed emerging multi-commodity exploration company focused on the development of its REE and scandium discovery within the Cue region of WA. This discovery has demonstrated high ratios of heavy rare earth oxides (HREOs) and critical magnet metals neodymium-praseodymium (NdPr) + dysprosium-terbium (DyTb).
Images: Victory Metals Ltd & iStock
