Renegade Exploration (ASX:RNX) wraps up December quarter on a high note, enters agreement to acquire North Isa Project

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Renegade Exploration (ASX:RNX) wraps up December quarter on a high note, enters agreement to acquire North Isa Project

 Renegade Exploration (ASX:RNX) wraps up December quarter on a high note, enters agreement to acquire North Isa Project
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Highlights

  • In December 2021, Renegade entered into a JV agreement with Burke Copper Pty Ltd. As part of the agreement, Renegade has an option to acquire up to 75% interest in the North Isa Project.
  • RNX would require to spend a total of AU$400,000 to earn 75% interest in the project within 36 months from the commencement of the agreement.
  • Post commencement of the Option Agreement, RNX commenced soil and rock chip sampling work on the North Isa Project.
  • The Company received the balance - AU$400,000 - of the cash component from the sale of Yandal East JV on 20 January 2022.

Renegade Exploration Limited (ASX:RNX) concluded the December 2021 quarter on a high note, with a joint venture agreement with Burke Copper Pty Ltd in place for the North Isa Project. The agreement provides Renegade with an opportunity to earn up to 75% interest in the project, located 40km north of the Mt Isa township.

Related read: JVs & cash deals: Inside Renegade Resources’ action-packed 2021

The North Isa Project is located directly north of the George Fisher mine and will control nearly 20km of the Western fault. The North Isa Project squats over thrust faulted Eastern Creek Volcanics and Mt Isa Group sediment boundary. The region is home to several existing copper mineral occurrences, including the historic Lady Agnes copper mine.

Map of North Isa permit and existing prospects (Image source: Company update, 27 January 2022)

Renegade paid AU$20,000 to Burke Copper on the execution of the Option Agreement. The conditions of the Option Agreement include:

Data source: Company update, 27 January 2022

Related read: Fresh deal positions Renegade (ASX:RNX) to earn up to 75% of the North Isa Project

Renegades believes that the Option agreement will lead to more consistent and rigorous exploration programs, as for the first time, the project has come under the control of one party.

Since entering the JV agreement, Renegade commenced several programs on the tenement:

  • RNX undertook a soil and rock chip sampling over the Pipeline and Lady Agnes prospects. The samples have been sent to a lab for assaying.
  • Soil and rock chip sampling continues at Tulloch and other areas of interest over the tenement area. RNX expects the program to be completed in the coming weeks.
  • RNX has elevated the prospect at Lady Agnes in terms of fieldwork and drilling. The development happened after reviewing historical exploration data together with ground field work.
  • The Company is planning to undertake a 2,000m RC drilling program at Lady Agnes. Negotiations are well underway with drilling contractors, and land access permitting is well underway.
  • The results from the initial field works are expected in the coming weeks. The results will help to identify targets for the drilling program.

Recent update: Renegade Exploration (ASX:RNX) kicks off field programs at North Isa

Carpentaria JV interest

During the December quarter, Renegade focused on geophysics and review of results from previous exploration works. The Company is fulfilling its JV obligations on the project. RNX holds 23.03% interest in the Carpentaria JV.

Location of Carpentaria JV Project (Image source: Company update, 27 January 2022)

Cash and Finance Position

Renegade reported a cash balance of AU$713,000 at the end of 31 December 2021. Total expenditure on exploration and evaluation incurred during the quarter stood at AU$48,000.

Renegade holds 40 million shares in Strickland Metals Limited (ASX:STK), which the Company received from the divestment of its interest in the Yandal East JV project. The shares are valued at ~AU$2.4 million as on 27 January 2022.

Post-quarter significant event

Renegade received AU$400,000 balance of cash component from the sale of its interest in the Yandal East JV Project to Strickland Metals. The Company notified the receipt of the balance on 20 January 2022.

Related read: Renegade Resources (ASX:RNX) receives final payment for the Yandal Project

RNX maintains a 0.5% net smelter royalty in the project for any commodity that will be mined in the future, thus maintaining an exposure in any future gains from the project.

Share price movement

RNX closed the day’s trade at AU$0.007 with a market cap of AU$6.15 million on 27 January 2022.

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