Terra Metals (ASX:TM1) Expands West Musgrave Footprint with HRM Deal | asx 200 Mining Update

Highlights

• Terra Metals has exercised an acquisition option to fully acquire HRM Exploration.

• The tenements expand the Dante Project, covering new contiguous ground in the Jameson Layered Intrusion.

• Deferred share milestones are tied to future exploration benchmarks and resource definition.

Terra Metals Limited (ASX:TM1), listed on the asx 200 index, has taken a significant step in expanding its exposure to copper and battery metal exploration in Western Australia. The company has confirmed the acquisition of HRM Exploration Pty Ltd, securing additional tenements that adjoin the Dante Project within the Jameson Layered Intrusion. The region sits in proximity to established assets like the Nebo-Babel deposit owned by BHP Group (ASX:BHP), placing Terra within a broader mineralised zone known for hosting key metals such as copper, nickel, and platinum group elements.

Expansion of the Dante Project through HRM Tenements

The acquired HRM tenements lie directly adjacent to Terra’s existing Dante Project and are geologically connected through shared mafic-ultramafic sequences. These additions effectively increase the company’s regional footprint within the West Musgrave mineral province. The tenements fall within the Jameson Layered Intrusion, a zone structurally similar to the Bushveld Complex, a globally recognised layered intrusion.

Terra has previously reported discoveries at Reef 1 North and Reef 2, two mineralised zones stretching along a significant strike length. The addition of HRM’s assets may aid in expanding known mineralised systems, as early exploration has confirmed extensions into the new ground.

Dante Reefs and Metallurgical Testwork

Work conducted to date on the Dante Project has included geophysical mapping, drilling, and metallurgical studies. The mineralised reefs, hosted in a layered intrusion, exhibit multi-metal compositions, with presence of copper, titanium, vanadium, platinum, and gold. Testwork has supported the feasibility of simple, low-energy processing methods capable of generating high-grade concentrates.

Terra has stated that a maiden Mineral Resource Estimate is underway for the Dante Reefs discovery, alongside ongoing metallurgical optimisation. Results from HRM tenements are expected to feed into future resource updates as exploration progresses across the enlarged tenement package.

Performance-Based Acquisition Structure

The acquisition was structured under a binding term sheet executed with HRM Exploration and its parent, Hardrock Minerals Limited. Terra secured exclusive rights for a specified period, which have now been exercised. Settlement is pending standard procedural conditions.

The agreed consideration comprises only Terra shares, delivered across two tranches. The initial tranche is unconditional, while the second is deferred and tied to exploration outcomes. Three milestones define future share issuance, each contingent on drill intercepts, company share performance, and resource definition under the JORC Code. These milestones stretch over a period ending in the following year and are structured to ensure alignment between geological performance and shareholder interests.

Jameson Layered Intrusion: Strategic Geological Context

The Jameson Layered Intrusion spans a vast section of the West Musgrave region and remains underexplored relative to its South African counterpart. Stratigraphic mapping has identified multiple mineralised layers, or “reefs,” across Terra’s tenements, many of which remain untested.

Geophysical reprocessing has highlighted several high-priority targets across the combined tenement package. Terra plans to integrate these datasets into its forward exploration programs, supporting future drill planning and resource work.

Ongoing Exploration and Integration Plans

Following settlement of the acquisition, Terra will begin integrating HRM’s ground into its exploration strategy. Activities will include geochemical analysis, drill testing of identified targets, and further metallurgical evaluation. The combined Dante-HRM landholding spans a sizeable area within a region characterised by high geological prospectivity for polymetallic mineralisation.

The expansion enhances Terra’s positioning in a district where other projects, such as BHP Group’s Nebo-Babel (ASX:BHP) and other West Musgrave ventures from entities like OZ Minerals (ASX:OZL), have also identified key resources. As Terra continues development work, updates on the exploration outcomes from these new tenements are expected to contribute to the company’s evolving project portfolio.