Zinc of Ireland (ASX:ZMI) has entered into a binding agreement to acquire up to 80% of the Mt Clere Copper-Base Metal Project in the Gascoyne region of Western Australia.
The company says the project is considered a highly prospective, drill-ready asset that contains a high-tenore, coincident magnetic and gravity geophysical target.
As part of the deal, Zinc of Ireland will also issue $50,000 cash, as well as issue 7.5 million shares at $0.01 to the vendor Christopher Reindler.
In addition, the company will issue a further 7.5 million shares at the same issue price to Berma Prospecting, which is an entity that may elect to acquire a 10% interest in the tenement.
Under the two staged earn-in agreement, Zinc of Ireland will earn a 51% interest in the project by sole funding the first $1.25 million of exploration expenditure across a two-year period.
Upon completion, Zinc of Ireland will issue $250,000 worth of shares to the vendor, calculated on a 10-day volume weighted average price (VWAP).
To earn an additional 29% interest, Zinc of Ireland will fund a further $2.5 million of exploration expenditure across a three-year period.
Upon completion, the company will issue an additional $250,000 worth of shares to the vendor, calculated on a 10-day VWAP.
Non-Executive Chairman Peter Huljich says the company believes the project is one of the last of its kind in Western Australia.
“This bullseye anomaly, marked by a distinct 400nT magnetic signature and a coincident 2mGal gravity anomaly, mirrors the geophysical fingerprints of major discoveries,” Huljich says.
“BHP (ASX:BHP) tried to drill this target in the 1990s but was forced to abandon the attempt due to technical challenges, leaving its full potential untapped.
“Thanks to cutting-edge geophysical advancements, our understanding of this anomaly has dramatically improved. Its scale and characteristics align with globally significant SEDEX and iron-oxide copper-gold deposits, such as the world-class Sullivan and Ernest Henry mines.”
Zinc of Ireland says an existing heritage agreement is already in place and drill planning is underway. A program of work is expected to be lodged imminently.
The Mount Clere Project, covering 75km2, is located within the Edmund Basin on Mt Clere Station in Western Australia.
Zinc of Ireland is a Perth-based explorer focused on developing its portfolio of zinc projects in Ireland and Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: iStock
