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Renegade Exploration (ASX:RNX) gets green signal for CJV interest acquisition

Summary

  • Renegade Exploration Limited has received indicative approval from the Queensland Department of Resources for securing the interest in CJV.
  • Mongoose is a high priority prospect and indicates an immediate drill-ready target, subject to agreement with MIM on sole risk terms.
  • The acquisition of SVM’s interest in the CJV is anticipated to conclude on 10 May 2021.

Mineral explorer and developer Renegade Exploration Limited (ASX:RNX) has been consistently progressing through exploration as well as acquisition activities.

Previously, the Company tendered all documentation needed to acquire the interest of Sovereign Metals Limited (ASX:SVM) in the Carpentaria Joint Venture (CJV) located in Queensland.  

Location of the Carpentaria JV Permits (Source: RNX Announcement 29/04/21)

In the latest development, RNX has secured indicative authorisation regarding the transfer of the interest of Sovereign Metals Limited (ASX:SVM) in the CJV. The approval secured from the Queensland Department of Resources shall enable the Company to transfer the interest of SVM to its Renegade Exploration (QLD) Pty Ltd, a wholly owned subsidiary of RNX.

PREVIOUS UPDATE: Renegade Exploration (ASX:RNX) looking to advance activities across projects in 2021  

In December 2020, RNX had shared its intentions to acquire the interest from Sovereign Metals Limited in the Carpentaria Joint Venture (CJV). The Company had lodged all essential documentation with the Queensland Department of Natural Resources and Energy for approval in early February.

In the meantime, RNX has been engaged in the review of the CJV database and has been in discussions with Mt Isa Mining Limited (MIM) to advance some smaller projects within the CJV that are too small and do not interest MIM.

Located in north western Queensland, the CJV’s portfolio comprises five exploration permits (EPM), including a high priority prospect, Mongoose. This prospect has witnessed limited follow up drilling since 2014 and presents an instant drill-ready target, subject to agreement with MIM on sole risk terms.

DETAILS OF THE ACQUISITION AT: ASX:RNX To Acquire ASX:SMV’s Share in Attractive Carpentaria JVA  

Mongoose prospect indicates significant opportunity

Mongoose prospect lies immediately on strike from the nearby Taipan deposit and Paddock Lode Mine and has shown encouraging widths of medium to high-grade mineralisation at surface and depth.

Mongoose Prospect, Source: RNX Announcement 03/05/2021

The Mongoose Prospect, along with Taipan, Paddock Lode mine and Great Australia mine, is located within Toole Creek volcanic and meta-sedimentary units. The unique location of Mongoose Prospect is ~2km from the Cloncurry townsite, a major mining services centre, and 1.2km west of the Great Australia mine and the related processing plant, which is presently under maintenance.

Notably, RNX has made its initial contribution to the CJV to maintain its 23.03% interest, and this prospect remains open in multiple directions to the north, south, west, and at depth.  

DID YOU READ: ASX:RNX Executes Share Purchase Agreement For Sale of Yukon Project

Way ahead

Going forward, the Company anticipates the acquisition of SVM’s interest in the CJV to conclude around 10 May 2021, subsequent to the receipt of indicative approval from the Queensland Department of Resources.

Further, SVM has chosen to obtain the initial tranche of the purchase consideration in the form of 15 million RNX shares.

Presently, RNX is advancing discussion with MIM in relation to the possible sole risk options on projects which do not meet the internal needs of MIM.

IMPORTANT UPDATE: Renegade Exploration (ASX:RNX) Delivers 250% Growth By Strategising Efforts

The RNX stock traded at AUD 0.007 on 3 May 2021.

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