Metalicity Limited (ASX: MCT) picks up its another preferred ground in the region of nickel and copper rich belt of Fraser Range, Western Australia.
In the announcement to Australian Securities Exchange, Metalicity unveils the two option and sale agreement that it has secured in the Albany Fraser Belt, highly prospective for Magmatic Nickel Copper and VMS Copper mineralization. It includes 3-month option to acquire Fraser Range project and Ventnor’s Biranup project, together covering total of 636km2 area in the world class Nickel Copper district of the Fraser Range, WA.
Commenting on the agreements, Metalicity Managing Director Matt Gauci stated that the Fraser Range has always been on priority in the company’s list of prospective geological terrains for the discovery of magmatic Nickel-Copper and VMS Copper mineralisation. He added that company is currently compiling all existing geological information to support future exploration activities.
The Fraser Range Project:
The Fraser Range project is located in the Fraser Range zone of Albany, dominated by metamorphosed mafic rocks. Owned by Romany Minerals, Fraser Range project covers a total area of 243Km2 where several Magmatic Nickel Copper targets remain unexplored. The deposits nearby Fraser Range project includes newly discovered Silver Knight deposit, within 20 km, and the operational Nova-Bollinger Nickel Copper deposit that is within the range of 10 km.
As per the terms of agreement, Metalicity has to pay $20,000 to Romany Minerals Pty Ltd (RML) in order to secure an exclusive 3-month option. Further, if MCT decides to exercise the option it will have to pay $250,000 to acquire 100% interest from RML.
The Biranup Project:
The Biranup project, owned by Ventnor Resources Limited (ASX: VRX), is located in the Biranup zone of the Albany Fraser Belt that stretches to cover a total area of 393km2. The project is within 20Km of the Tropicana gold deposit and was earlier the subject of primarily gold exploration with numerous Magmatic Nickel Copper and VMS type Copper targets identified which remain untested.
To secure the 3-month option period in Biranup project, Metalicity requires to pay an option fee of $20,000 to Ventnor Resources. If the option is exercised Metalicity has to pay a purchase price of $500,000 to acquire 40% interest in the project. However, the purchase consideration can be paid in cash and/or MCT shares to Ventnor, depending upon Metalicity’s choice.
Following exercise, the parties will reportedly enter into a farm-in arrangement, whereby MCT may earn a further 20% by spending $1 million and a further 20% by spending an additional $1 million (to an aggregate 80% interest), following which the parties will form a joint venture to fund the Project on a pro-rata basis or the company’s interest to dilute to a net smelter royalty.
With the view to fund exploration and project generation in Nickel and Copper, Metalicity limited has recently started the process to sell its zinc and lithium interests in WA, due for completion by December Quarter 2018 and March Quarter 2019.
In today’s trading session, Metalicity stock mounted 11.765% to close at $0.019 on 15 November 2018. However, in the long-run, the stock has witnessed a performance change of -60.47% over the past one year.
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