Western Mines Group (ASX:WMG) has struck a deal with Dynamic Metals (ASX:DYM) to purchase a new tenement next door to its Mulga Tank Ni-Cu-PGE Project area in Western Australia.
The acquisition of tenement E39/2134 expands Western Mines’ project area to 425km-square, covering 37km strike and the entire ‘under-explored’ Minigwal Greenstone Belt.
In return for the tenement, Western Mines will pay $20,000 in cash and issue to Dynamic 100,000 WMG shares and 200,000 options with a strike price of $0.60, exercisable 3 years from their date of issue.
Western Mines will also provide Dynamic a 1% net smelter royalty (NSR).
Completion and settlement of the acquisition is expected to occur within 5 days or such other date as agreed between the parties.
Western Mines share price had increased by 8.62% to $0.32 as of 10:15am AEDT today (3 October).
The company, which has a $16.65 million market capitalisation, says the new ground contains multiple interpreted ultramafic bodies suggested to represent potential komatiite channels emerging from the main Mulga Tank dunite intrusion. These ultramafic bodies have never been drill tested.
Commenting on the acquisition, Western Mines Group Managing Director Caedmon Marriott says: “This strategic acquisition secures the final missing piece of the Minigwal Greenstone Belt and consolidates Western Mines Group’s ownership of the Mulga Tank Ultramafic Complex.
The new ground is contiguous to, and surrounded by, Western Mines Group’s tenements E39/2132 and E39/2299 and contains a number of interesting looking interpreted ultramafic bodies extending from the Panhandle area of the Mulga Tank Complex.
Tenement E39/2134 is already granted so we intend to get on the ground there as soon as possible.”
Western Mines Group is an ASX-listed precious, critical, and battery metals exploration company. The company’s portfolio of assets is located on ‘major’ mineral belts of Western Australia.
As of 30 June 2023, the company had $3.272 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Western Mines Group
