Meteoric Resources which is a Canadian cobalt explorer has entered into a conditional agreement with the ASX listed company TopTung to sell its Canadian nickel-copper projects, Midrim and LaForce.
In the western part of Ontario, Meteoric Resources NL (ASX: MEI) initially is going to drill 8 holes of 500 meters each in its Joyce project. MEI considers this project as its top priority and also targets to be the world’s most prospective cobalt districts.
For this reason, MEI has divested its Canadian nickel-copper projects to TopTung Limited (ASX: TTW). On the other hand, TTW is taking a step ahead to acquire Zeus Minerals which is an Australian explorer. The Zeus mineral has two nickel and copper sulphide projects located in Quebec, Canada.
Both the companies try to maintain their strength and also hold a strong position in the respective projects.
The deal between both the companies was agreed at $1,531,250 which is based on the last trading price of TopTung. This enhanced the cash available with Meteoric and the value of listed shares to approximately $4,000,000.
Andrew Tunks who is the Managing Director of Meteoric stated that divestment of the Canadian nickel-copper project is good for Meteoric. This will lead the company to completely focus their move into the Canadian cobalt space. He also expresses his excitement of entering into an agreement with TTW as TTW is more focused on the Nickel-Copper space. He also says that in the near future of TTW, the shareholders will definitely see the benefits for the same.
At present, there is an ongoing drilling at Joyce which is the highest priority target of Meteoric. Drilling has also resulted in some favorable indicators.
Based on the 3D geophysical modeling, the outcome revealed that there were 9 electromagnetic variances which have the potential for Copper, Cobalt, Gold. Also, the examination of rock chip remains positive at the Joyce project.
Apart from these results, at the Joyce project, the mineralization contains host rock type for cobalt, copper, and gold. This mineralization has a history of giving high-grade ore which consist of 11 percent copper, 0.3 percent cobalt and 8.07 grams per ton of gold. In addition to these results, Joyce contains the host rock type for cobalt, copper and gold mineralization and has historical high-grade assays of 11 percent copper, 0.3 percent cobalt and 8.07 grams per ton of gold.
The performance of MEI remains negative throughout its journey. Since inception, the performance is -6.76%. The 1 year, 5 years and 10 years performance of the company is -73.13%, -40% and -15.24% respectively
It was seen that by the close of the day, the share price of MEI has tumbled down by 16.667% which is almost near to 52 weeks low price. By the end of the day, the closing price of the share was A$0.015 with the market capitalization of A$10.25 million.
At present, the trading at TTW is suspended until a further announcement is made regarding the acquisition of nickel-copper sulphide project.
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