Leigh and Creek (ASX:LCK) signs MoU for acquiring Mulpun

January 17, 2022 06:50 PM AEDT

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Leigh and Creek (LCK), signing MoU, acquisition, Mulpul ISG Project, Share price — Image source: © Utah778 | Megapixl.com

Highlights

Leigh and Creek has signed an MoU to initiate negotiation for acquiring Mulpul ISG project in Chile.

LCK has considered acquiring Mulpul as it is in the advanced development stage led by scientists of CSIRO in the past.

The acquisition is expected to get completed within April 2022.

Energy and mineral explorer Leigh and Creek Energy Limited (ASX:LCK) announced today that it has signed a Memorandum of Understanding (MoU), enabling the Company to negotiate the acquisition of the Chile-based Mulpun ISG project from Antofagasta Mineral SA. In addition to that, the Mulpun project also includes freehold title to the land, approvals, assets, and property currently owned by Antofagasta.

LCK has agreed upon the broad commercial terms under the MoU. The Company has also informed that it will immediately move on with the last stage of due diligence and negotiate the final acquisition terms and conditions with a target of completion in April 2022.

Why is the Mulpun acquisition important?

LCK stated that it has identified an attractive opportunity at Mulpun. Mulpun is in its advanced development stage, which was guided by CSIRO scientists earlier. The project is situated in an attractive jurisdiction for development. Chile is a significant spot for the Company's commercial development because of its high energy cost and dependency on imported coal, natural gas, and oil. Moreover, Chile has an educated workforce and a reliable legal system necessary for long-term business growth.

Meanwhile, on the ASX, LCK closed at AU$0.150 per share today.