Musgrave (ASX:MGV) to acquire 100% interest in Mt Magnet South Project

Highlights

• Musgrave Minerals has inked a deal to acquire a 100% interest in the Mt Magnet South Project, consolidating MGV’s position in the region.
• Additional discoveries at the Project can potentially add to MGV’s growing resource base in the region, enhancing the value of its Cue Project.
• MGV looks to commence drill planning after the consolidation of historical exploration data and completion of a regional gravity survey.

Musgrave Minerals Limited (ASX:MGV) via its subsidiary has inked a deal with Eastern Goldfields Exploration Pty Ltd for the acquisition of a 100% interest in numerous tenements that include the Mt Magnet South Project. The acquisition will help MGV to consolidate its position in the region.  

The Mt Magnet South Project is located within trucking distance of MGV’s Cue Gold Project in Western Australia’s Murchison goldfields and just 5km south of the township of Mt Magnet.

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Consideration and key terms of the Agreement

MGV has entered into a Sale and Purchase Agreement (SPA) through its wholly-owned subsidiary Musgrave Exploration Pty Ltd. Eastern Goldfields will sell its interest in the tenements to MGV for the following consideration:  

Source: MGV Announcement 31/03/22

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As per the key commercial terms of the SPA, Eastern Goldfields will be entitled to receive a 1.0% NSR royalty in respect of any gold and rare earth elements produced from the Tenements after the Completion. Moreover, the SPA remains subject to MGV undertaking due diligence in relation to the tenements.  

The condition for due diligence has been satisfied, and it was not necessary for MGV to conduct due diligence on the financial and other capacity of Eastern Goldfields as Eastern Goldfields does not have any obligations under the SPA following Completion. The Completion took place on 30 March 2022.  

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Mt Magnet South Project

The Project includes a group of 19 semi-contiguous prospecting and exploration licences extending over an area of around 294km2. Mt Magnet is an early stage, under-explored greenfield opportunity, in a good location with excellent nearby infrastructure. 

Moreover, the Project offers an added opportunity for MGV to make further discoveries in the Murchison, which can possibly be added to MGV’s expanding resource base in the region, ultimately improving the value of the Cue Project.  

 Source: MGV Announcement 31/03/22  

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The Project has seen very limited historical drilling with only limited intermittent exploration undertaken by previous owners from 1960 to 2020.  

MGV has initiated a complete compilation and digitisation of historical data and has identified numerous initial structural and surface geochemical targets for drill testing.   

Ongoing and upcoming work

MGV is compiling, digitising, plotting and reviewing the historical data to enhance targeting. It also has plans to conduct a regional gravity survey. The survey will also be integrated with current aeromagnetic data and geological and geochemical datasets with an aim to improve the drill planning to test high-priority basement gold targets.  

MGV aims to define a pipeline of further high-grade gold resources through discovery that can be economically trucked 40km north to a possible upcoming operations hub at MGV’s Cue Project. MGV strategizes to identify and secure further early-stage exploration grounds in the region to build on the Company’s success at Cue Project and maintain a long-term pipeline of opportunities.  

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MGV stock was noted at AU$0.330 on 31 March 2022.