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Highlights
- Cooper Metals has acquired EPM19686 tenement within the Eastern Province, which hosts Jericho Cu-Au deposit and Eloise Cu-Au mine.
- The new tenement is adjacent to the existing exploration licence application EPM28905, taking the holding to 100 km2.
- At the new tenements, the company plans to undertake desktop and on ground evaluation.
Cooper Metals Limited (ASX: CPM) has inked a binding term sheet with Spinifex Rural Management Pty Ltd to acquire strategic tenement-EPM19686 and all related mining information. The tenement is located in close proximity to ASX-listed AIC Mines’ Eloise Cu-Au mine, which has reported over 13.5Mt of ore grading 2.8% Cu and 0.8g/t Au.
The new tenement complements the company’s adjacent exploration licence application EPM28905, taking the total ground holdings to nearly 100 square kilometres in the prospective Eastern Province of the Mt Isa Inlier, where significant deposits such as Jericho Cu-Au deposit (ASX:AM1) have been unearthed recently.
The proposed acquisition aligns with the company’s strategy to acquire complementary projects to its current project portfolio.
Data source: Company update
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The transaction involves a consideration of 600,000 ordinary shares and 300,000 free attaching unlisted options.
To know about recent progress at King Solomon-1, click here.
Strong potential of the new tenement
The tenement sits within a highly prospective area and is nearby recent copper-gold discoveries.
EPM19686, the tenement being acquired, and the new tenement application EPM28905, together, are referred to as the Oorindi Cu-Au project.
The exploration program in the project area would target iron oxide copper gold (IOCG), iron sulphide copper gold (ISCG) and shear-hosted and fracture-controlled Cu (+/- Au) systems within the Proterozoic basement rocks.
In the new tenement area, limited exploration has been done historically, with no on ground in the past decade. In the 1990s, some drilling activities were undertaken by BHP, targeting magnetic highs for IOCG style mineralisation, including in the EPM28905 area.
Data source: company update
The company sees significant potential for undiscovered ISCG style mineralisation in the new project area.
The company plans to deploy geophysics such as electromagnetic surveys to target the prospective rocks and drill test the highest ranked anomalies based on favourable geological and structural criteria.
Project due diligence
As per the contract terms, the company has agreed to issue 600,000 shares to the vendor at a deemed issue price of AU$0.125 apiece and 300,000 unlisted options with an exercise price of AU$0.25 and expiry in three years (from the issue date).
The consideration is subject to a voluntary escrow period until 1 June 2024.
The conditions precedent to the settlement of the acquisition are completion of due diligence on the tenement by Cooper, passing of resolutions at the general meeting to be held on 12 October 2023, and gaining all necessary approvals.
Next plans for Oorindi project
The company would move ahead with on ground and desktop evaluation, planning geophysical surveys and undertaking drilling any prospective geophysical targets.
CPM shares last traded at AU$0.12 apiece on 2 October 2023.
